Mumbai: Rupee weakened by 25 paise to breach the 66-level and hit its 13-month low of 66.05 against the US dollar in the early trade today due to appreciation of the US currency overseas. Increased demand for the dollar from importers also put pressure on the domestic unit.
Meanwhile, the minutes of the last meeting of the Monetary Policy Committee (MPC) indicated the Reserve Bank of India may shift to a hawkish monetary stance in June. Dealers attributed the rupee’s fall to dollar gains against other currencies overseas, persistent foreign fund outflows and a lower opening of the domestic equity market.
Yesterday, the rupee had lost 14 paise to close at a fresh 13-month low of Rs 65.80 as growing worries over higher crude prices and likely fiscal slippages led to subdued forex market sentiments. Meanwhile, the BSE benchmark Sensex shed 48.54 points, or 0.14 per cent, at 34,378.75 in opening trade today.
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