Indian rupee weakens by 41 paise after Fed tapering

Written by PTI | Mumbai | Updated: Jan 30 2014, 17:31pm hrs
Indian rupee, rupee todayThe Indian rupee had gained 10 paise to close at 62.41 against the US dollar in yesterday's trade. Reuters
In line with equity market, the Indian rupee tumbled by 41 paise against the dollar in the late morning trade on persistent demand for the American currency from banks and importers after the Federal Reserve decided to further reduce its monetary stimulus.

The Indian rupee resumed lower at 62.90 per dollar as against the last closing level of 62.41 per dollar at the Interbank Foreign Exchange market on initial dollar demand.

However, it recovered afterwards to 62.73 per dollar before quoting at 62.82 at 1045 hours.

It hovered in a range of 62.73 and 62.90 per dollar during the late morning deals.

Month-end dollar demand from importers, mainly oil refiners, affected the rupee sentiment, a forex dealer said.

The benchmark Sensex tumbled by 222.32 points or 1.08 per cent to 20,424.98 at 1045 hours on broad-based selling pressure due to fall in the global market.

This was after the US Federal Reserve cut its economic stimulus by USD 10 billion and a report showed China's manufacturing industry had contracted.