Rupee drops to 41.16 against US dollar
Rupee falls against the US dollar in early trade due to some weakness in equity markets and month-end dollar demand from banks.business Updated: Aug 28, 2007 16:51 IST
Rupee fell by 1450 paise to 41.16/17 against the US dollar in early trade on Monday due to some weakness in equity markets and month-end dollar demand from banks.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 41.09/11 a dollar from yesterday's close of 41.0150/0250 per dollar.
Thereafter, it dropped further to quote at 41.16/17 in late morning deals.
Dealers attributed fall in the rupee value to weakness in local equity markets as well as narrowly mixed trend in Asian indices, forex dealers said.
The benchmark index was down by about 90.70 points in morning trade at 14,751.68.
Month-end dollar demand from state-run banks to meet the importers requirements also weighed on the rupee sentiment, they added.
Though the political situation seemed to be returning to normalcy, operators were still worried about the current political scenario which also depressed the rupee sentiment to some extent.
The general uncertainty over the US subprime mortgage problems and local political conditions kept the operators and traders away from the market as they decided to play safe.