The rupee lost 38 paise declining to 62.15 against the US dollar in early morning trade ahead of the Reserve Bank of India’s mid-quarter review of the monetary policy for 2013-14.
The rupee lost 38 paise declining to 62.15 against the US dollar in early morning trade on Friday on the Interbank Foreign Exchange due to fresh demand for the US currency from importers, ahead of the Reserve Bank of India’s mid-quarter review of the monetary policy for 2013-14.
The BSE benchmark Sensex fell around 100 points in the opening trade and traded flat after awhile. The broader Nifty, which slipped below the key 6,100 levels, was down slightly.
The rupee had gained 161 paise, to close at a more than one-month high of Rs 61.77 against the dollar yesterday, owing to the US Federal Reserve’s unexpected decision on sticking to its stimulus programme.
Analysts ascribed the rupee’s fall to a watchful approach adopted by investors ahead of the RBI’s mid-quarter monetary policy review and a feeble opening in the domestic equity market but dollar’s downfall against other currencies abroad, limited the fall.
New governor Raghuram Rajan is likely to hold key rates at 7.25 percent and ease liquidity tightening measures in his inaugural policy.