₹ stutters as focus shifts to RBI meet, dips 22p against $

Mumbai: The rupee on Tuesday dropped by 22 paise to close at 65.50 against the resurgent dollar amid rising expectations of a rate hike by the US Federal Reserve. The rupee opened with lower at 65.65 against last weekend close of 65.28 on heavy bouts of dollar demand, despite strong equities. The domestic currency regained some lost ground at the fag-end to settle at 65.50, showing a sharp fall of 22 paise, or 0.34 per cent. Forex trading sentiment turned little shaky ahead of the RBI policy meet outcome. Increased demand for the American unit from importers and corporates along with massive capital outflows largely contributed to the rupee's weakness.