Mumbai: The rupee depreciated by 22 paise to trade at over 10-month low of 62.51 against the greenback in early trade today due to increased demand for the US currency from importers and a weak opening in domestic equity markets.
Forex dealers said besides fresh demand from importers for the American unit at the Interbank Foreign Exchange here, a lower opening in the domestic equity market after industrial output contracted by 4.2 per cent in October – the sharpest decline in at least two years – put pressure on the rupee.
Besides, dollar’s gains against other currencies overseas weighed on the rupee, they added. The Indian rupee after falling to over ten-month low of 62.50 against the greenback, bounced back to end 4 paise higher at 62.29 on Friday on selling of dollars by state-run banks on behalf of the RBI.
Meanwhile, the benchmark BSE Sensex fell by 245.64 points, or 0.89 per cent, to 27,105.04 in initial trades today.