Millennium Post

Rs tanks 39p to 2-month low of 62.55 against $

The Indian rupee on Monday fell to two-month low and closed with a sharp 39 paise loss at 62.55 against the US dollar after better-than-expected jobs data spurred expectations of an early hike in US interest rates.

Fresh dollar demand from importers amid strong cues in overseas markets and a steep fall in local equities also weighed on the rupee value. The dollar gained as strong payrolls data raised bets of a Fed rate hike, as early as summer. This pushed the dollar index to fresh 11-year high.

At the Interbank Foreign Exchange (Forex) market, the Indian rupee opened lower at 62.60 against last Thursday's close of 62.16. It declined further to a two-month low of 62.7350 -- a level not seen since January 8, 2015 when it touched an intra-day low of 63.20. Later, it recovered some ground to touch a high of 62.53 before concluding at 62.55, still showing a fall of 39 paise or 0.63 per cent. 
The Indian benchmark S&P BSE Sensex was down by 604.17 points or 2.05 per cent - its biggest fall in last two months. Foreign Portfolio Investors (FPI) bought shares worth $226.36 million last Thursday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group, CEO said,"The trading range for the spot rupee is expected to be within 62.00 to 63.00."
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