Falling for the fourth straight session, the rupee on Monday lost a hefty 50 paise to close at 55.92 against the US $ on persistent dollar demand from importers amid weak global sentiments after data showing weaker-than-expected growth in US jobs.
“The weakness in the rupee was purely due to the external situation, especially the slide in the euro against the dollar,” said NS Venkatesh, treasury head, IDBI Bank. “There was also demand from the oil companies, which put a pressure.”
After opening sharply lower at 55.90 against Friday’s level of 55.42, the rupee slumped to the day’s low of 56.07 against the US dollar. The Indian currency had last fallen below the 56-level against the dollar on June 29.
With foreign institutional investors (FIIs) pumping over Rs. 250 crore in stocks on Monday according to provisional BSE data, the rupee recovered a little and strengthened to 55.81, before ending in the red.
The rupee has tumbled by 154 paise, or 2.83%, in last four days.