The Indian rupee on Monday tanked 38 paise to log nearly 7-month closing low of 61.53 against the Greenback following dollar demand from importers and some weakness in stocks ahead of the RBI policy review.
Sustained capital outflows also kept the rupee under pressure while some weakness in dollar overseas, which was trading down by 0.14 per cent against its major global rivals, was not able to stem the rupee fall, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.35 a dollar from previous close of 61.15. It immediately touched a high of 61.31 on initial firmness in local equities.
later, it fell back sharply to a low of 61.59 before concluding at 61.53, showing a fall of 38 paise or 0.62 per cent. This is its weakest level since March 5, 2014 when it closed at 61.75.
last Friday, the rupee rose by 19 paise or 0.31 per cent. In other Asian currencies, the dollar appreciated as well. The Japanese yen headed towards the 110 mark after US data showed the economy expanded at its fastest pace since 2011 during the April-June quarter.