Rupee in free fall, slips 8 paise to hit fresh 3-month low

Heavy demand for the American currency from importers, persistent outflows by foreign funds and the dollar’s strength against other currencies overseas weighed on the rupee.

Extending its losses for the third session, the rupee weakened by 8 paise to trade at fresh 3-month low of 64.87 against the US dollar in opening trade ahead of RBI’s minutes for the latest policy meeting due later on Wednesday.

The rupee ended lower by 58 paise on Tuesday, at 64.79 -- its lowest in three months -- on rise in capital outflows. (Reuters)

Besides heavy demand for the American currency from importers, persistent outflows by foreign funds and the dollar’s strength against other currencies overseas weighed on the domestic unit, forex dealers said.

A higher opening of the equity market on Wednesday, however, capped the fall.The benchmark BSE Sensex rose 207.77 points, or 0.61%, to 33,911.36 in early trade.

The rupee ended lower by 58 paise on Tuesday, at 64.79 -- its lowest in three months -- on rise in capital outflows.