Rupee fell to as much as 62.18 to a dollar and was last trading at 62.14/15
Worries of sustained inflationary pressures in the economy also prompted investors to short the domestic currency
At 11:10AM the rupee was trading at Rs 61.63 compared with previous close of Rs 61.25 per dollar
Rupee ended at Rs 61.25 compared with previous close of Rs 61.04 per dollar
Though forex reserves are up by $19 billion and the import cover has improved to 7.5 months, rupee continues to face taper risks
Increased demand for the dollar from importers put pressure on the rupee
RBI buys $ 4 billion in Oct; highest in over five years
This is due to dollar buying by OMCs
Currency ends at 61.14; RBI withdraws special window for OMCs
Bankers say the market would be cautious before economic data to be released later this week
Sensex soared to an all-time high of 21,483.74 points
According to currency dealers dollar buying from OMCs is present in the market
Valuations look reasonable but sentiment still remains bearish
Swells $5 bln in a week; steepest weekly rise in 2 years
Fear of tapering and rise in interest rates due to high inflation may mean more volatility
Weakness of dollar in the overseas market also boosted the rupee value
The rupee had gained 30 paise to close at one-month high of 61.75 in the previous session
Dealers said a state-run bank was buying dollars likely on behalf of oil refiners and importers
But analysts say rupee is unlikely to weaken to record low levels