Rupee weakens for second straight day

The rupee hit a one-month low on Tuesday as continued dollar demand from oil importers and weaker regional currencies kept it under pressure even after the local unit posted its worst single-day fall since March 20 in the previous session.

The rupee ended at Rs 60.77 compared with previous close of Rs 60.59 per dollar.

The domestic currency came under pressure as the pace of foreign buying in domestic shares has slowed, even as indexes edged higher to record highs on Tuesday. Meanwhile, in debt markets foreign investors have been net sellers over the previous two weeks.

Traders said the near-term outlook for the rupee will depend on the movement of these foreign fund flows, as well as global developments, especially lingering tensions in Ukraine and continued concerns about China's economy.

"The flows into equity and debt markets have slowed in April. Their momentum going ahead will be crucial as also the development in Ukraine," said Hari Chandramgethen, head of foreign exchange trading at South Indian Bank.

"The rupee is likely to trade in a 60.40 to 61.25 range in the rest of the week."

According to currency dealers state-run banks as well as foreign banks were seen buying dollars during the day due to which the rupee was under pressure.