Rupee loses 18 paise to touch new 23-month low
The Indian rupee today fell by 18 paise to close at a fresh 23-month low of 45.75/76 against the US dollar, as banks continued to buy the greenback amid regular capital outflows.
The rupee has lost 111 paise or 2.5 per cent over the week to close near the 46 level for the first time since October 10, 2006 when it ended the day at 45.80/81 vis-a-vis the greenback.
In active trade at the Interbank Foreign Exchange (forex) market, the local currency moved in a wide range of 45.53 and 45.78 during the day after resuming steady at 45.58/60 a dollar from its previous close of 45.57/58 a dollar.
Forex dealers said banks were seen picking up dollar in spot market to book profits in the offshore market amid strong anticipation that the rupee will cross 46 level in the near future.
They said the domestic currency was under heavy pressure due to negligible supplies and consistent portfolio outflows from equity markets.
Traders said the Indian unit had recovered to 45.53 level during the day after some public sector banks sold dollars, probably at the behest of the Reserve Bank of India (RBI).
The rupee sentiment also was affected by weakness in local stocks. The Indian benchmark Sensex ended 323.48 points or 2.26 per cent lower today.