The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday on fresh demand for the American currency from banks and importers amid higher greenback in overseas markets.
Besides, sharp fall in equity markets affected the value of the rupee.
The local currency opened sharply lower at 65.60 against Wednesday’s level of 65.49 at the Interbank Foreign Exchange (Forex) market and dropped further to 65.77 before finishing at more than one-month low at 65.75, showing a loss of 26 paise or 0.40%.
The rupee had ended at 65.96 on September 29, 2015.
During the day, it hovered in the range of 65.60 and 65.77.
The dollar index traded higher by 0.09% against a basket of six currencies in Thursday’s late afternoon trade.
In overseas markets, the US dollar moved firmly higher against other major currencies on Thursday, building on the prior day’s gain that came after hawkish comments from Federal Reserve chair Janet Yellen.
The suggestion by several Fed officials that the US central bank may start raising rates in December has fueled dollar buying in recent sessions.
{{/usCountry}}The suggestion by several Fed officials that the US central bank may start raising rates in December has fueled dollar buying in recent sessions.
{{/usCountry}}Meanwhile, the benchmark BSE Sensex ended lower by 248.72 points, or 0.94%, at 26,304.20.