The rupee on Tuesday hit nearly a six- month low of 55.41 by losing a staggering 30 paise, due to sustained dollar demand from importers and weak local equities, extending losses for the third straight session.
The rupee resumed higher at 54.97 per dollar from previous close of 55.11 at the Interbank Foreign Exchange market.
It touched a high of 54.80 at initial stages on early rally in equities but later, fell back to a low of 55.42 before concluding at 55.41, showing a fall of 30 paise, or 0.54 per cent. This is rupee’s lowest level this year. It had closed at 55.45 on November 27, 2012.
“The rupee weakened on account of fall in equities and firmness in dollar against euro and other peers overseas. It is likely to fall to 56-level this week,” said Ashtosh Raina, chief dealer at HDFC Bank.
Meanwhile, falling for the second day, Sensex on Tuesday slid by over 112 points to close at one-week low of 20,111.61, mainly due to profit booking in interest rate sensitive sectors including realty, auto and banking. Fall in Tata Motors, ITC, SBI, HDFC Bank, ONGC, NTPC and M&M together contributed over 100 points drop in the Sensex.