Rupee weakens yet again; tanks 23 paise against USD
Falling for the third straight session, the rupee weakened by 23 paise to 65.10 against the US dollar to hit its three-month low in opening trade at the forex market today. The dollar firmed up against select global currencies as US Federal Reserve Chairman Jerome Powell's upbeat views on the economy bolstered bets on further Fed interest rate hikes this year. Here's more.
Why did rupee fall against dollar?
Forex dealers said sustained month-end demand for American currency from importers, foreign fund outflows, and the dollar's gains against other global currencies weighed on the rupee. Investors were cautious ahead of GDP and IIP numbers to be released later in the day. Yesterday, INR lost by 8p ending at 64.87 against USD on sustained dollar demand from importers and banks amid heavy capital outflows.
