Weekly review: Rupee plunges to one-month low against US dollar

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Rupee reacted sharply downwards by 86 paise to finish at one-month low of 54.80 against US dollar. (Reuters) Rupee reacted sharply downwards by 86 paise to finish at one-month low of 54.80 against US dollar. (Reuters)
SummaryRupee reacted sharply downwards by 86 paise to finish at one-month low of 54.80 against US dollar.

Indian rupee reacted sharply downwards by 86 paise to finish at one-month low of 54.80 against the American currency on fresh dollar demand from banks and importers on the back of higher dollar in the overseas market in spite of bullish local equities and heavy foreign funds inflows.

The rupee resumed higher at 53.78 per dollar as against the last weekend's level of 53.94 per dollar at the Interbank Foreign Exchange (Forex) Market on selling of dollars by banks and exporters.

However, it continued to decline after Tuesday and logged a low of 54.8050 per dollar before ending the week at one-month low of 54.80 per dollar, showing a loss of 86 paise or 1.59 per cent on heavy dollar demand from banks and importers. Last week, it had risen by 43 paise or 0.79 per cent.

This is rupee's lowest level since April 5 this year, when it had hit a low of 54.81.

The rupee tanked following strengthening of dollar in global markets tracking favourable US job data and oil related forex payments by Indian refiners.

Additionally, the greenback also strengthened against yen.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies traded positively after US new claims for unemployment benefits dropped to the lowest level in more than five years.

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