MUMBAI: The rupee on Wednesday lost 28 paise to close at 61.22 against the dollar due to sustained dollar demand from importers, ahead of release of key economic data later in the day.
Renewed capital inflows, stable equities and weak dollar overseas failed to stem the rupee fall, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the local unit commenced weak at 61.10 a dollar from previous close of 60.94. It fell to a low of 61.26 before ending at 61.22, a loss of 28 paise. This is rupee’s second straight day of losses. Yesterday, it ended the trade nine paise lower.
Meanwhile, the BSE benchmark Sensex today closed higher by a mere 30 points. FIIs infused USD 250.30 million yesterday, as per Sebi data.
The dollar index, a gauge of six major global rivals, was down by 0.04 per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India), said: “The rupee is expected to trade strong and appreciate in the coming days over the improved sentiment ahead of elections.”
Meanwhile, official data released after market hours showed that February retail inflation has slowed to 8.10 per cent from 8.79 per cent in January.
Industrial production grew at 0.1 per cent in January. Meanwhile, forward dollar premium improved further on sustained paying pressure from banks and corporates.