Rupee trims initial losses against dollar;still lower by 83 paise

The rupee trimmed its early losses but was still quoted lower by 83 paise to 59.53 per dollar after hitting 60-level on strong demand for the American currency from banks and importers amidst sharp fall in equity market.

Persistent capital outflows from foreign funds also affected the market sentiment.

The rupee resumed lower at 59.50 per dollar against the last closing level of 58.70 per dollar at Interbank Foreign Exchange (Forex) Market and dropped further to an all-time low of 60.00 per dollar before quoting at 59.53 per dollar at 1040 hrs.

In New York, the US dollar surged yesterday after Federal Reserve Chairman Ben Bernanke said the central bank could slow the pace of its bond-buying programme later this year if its economic forecasts are accurate.

The Indian benchmark Sensex fell below the 19,000 level due to all-round selling pressure as the rupee hit record low against the dollar coupled with lower global cues. The Sensex dropped by 401.81 points, or 2.09%, to 18,843.89 in the late morning trade.