The rupee started 2017 on a weaker note and plummeted by a whopping 30 paise to 68.22 against the US dollar due to huge demand for the American currency. Frantic investment outflows from the country against the backdrop of buoyant dollar sentiment largely kept home currency under immense pressure.
Healthy demand for the American unit from importers and corporates too weighed on the rupee alongside subdued trend in local equities, a forex dealer commented. Indian bourses had a softer start to 2017 as equities were buffeted by concerns surrounding over the post demonetisation drive and upcoming Q3 corporate earnings outlook. The domestic currency resumed on a weak note at 67.95 from last Friday's closing level of 67.92 in an extremely quiet trade at the Interbank Foreign Exchange Market.