Rupee ended down today, snapping its two-day rise against the dollar, led by persistent outflows from foreign funds, dollar demand from importers and the rise in non-deliverable forward rate, dealers said.
The Indian unit closed at Rs 48.52 per $1, compared with Rs 48.07 on Tuesday. It moved in the band of Rs 48.35-48.61 per $1 intraday. “The fall in stock market prompted banks to buy dollars for FIIs (foreign institutional investors),” said a dealer at a US bank.
Foreign funds have been repatriating money from emerging markets to avert risks. So far in October, foreign funds have net bought $1.78 billion worth of equities in India and were net sellers to the extent of $46.9 million Tuesday.
