Rupee Falls Sharply Against US Dollar Today, Down To 3-Month Low

The rupee (INR) fell 64 paise to 64.85 against the US dollar (USD) at the interbank forex market today. Traders attributed higher demand for the US dollar from importers and banks and broad strength of the greenback for the rupee's decline today. On Friday, the rupee had ended 30 paise lower at 64.21 against the US dollar on rising global crude prices and worsening trade deficit. The currency markets were closed yesterday. In recent trade, rupee traded near its day's low, at 64.82.
1) Domestic equity markets struggled for gains today in noon trade today, further weighing on the rupee. Weakness in domestic stocks is weighing on the rupee, forex advisory firm IFA Global said in a note. The sentiment in banking stocks is also negative due to developments around PNB scam and rising rates, it added.

2) On a net basis, foreign investors withdrew Rs. 895.79 crore from stocks yesterday, according to a provisional data.

3) In global markets, the US dollar continued its rebound from three-year lows of 88.253 set on Friday. The dollar index is a measure of the value of the US dollar relative to a basket of foreign currencies. The dollar index against a basket of six major currencies was 0.3 per cent higher at 89.346.

4) "The Indian rupee fell to two month low amid broad dollar strengthening ahead of Wednesday's Fed meeting minutes and key Fed member's speeches," IFA Global added.

5) The Sensex and Nifty were mildly lower in late trade today.

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