The Indian rupee crashed by 73 paise to close at two-month low of 62.66 against the US currency on strong dollar buying by banks and importers.
Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end, they said.
"The month-end dollar demand, downbeat data from China and Fed's tapering plan are all seen putting pressure on the rupee," said Abhishek Goenka, CEO of India Forex Advisors.
The Federal Open Market Committee, responsible for open market operations in the US, is meeting for two days on January 28 and January 29.
At the Interbank Foreign Exchange market, the local unit resumed lower at 62.12 a dollar from last close of 61.93.
It attempted a recovery at 62.07, but soon fell to a low of 62.73 before settling at 62.66, a fall of 73 paise. This is the biggest one-day fall in rupee since November 11, 2013 when it had tumbled by 77 paise.
The last time the rupee closed at today's level was on November 22, 2013, when it finished at 62.87. Meanwhile, the benchmark BSE Sensex tumbled by 240.10 points or 1.12 per cent.
Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end, they said.
"The month-end dollar demand, downbeat data from China and Fed's tapering plan are all seen putting pressure on the rupee," said Abhishek Goenka, CEO of India Forex Advisors.
The Federal Open Market Committee, responsible for open market operations in the US, is meeting for two days on January 28 and January 29.
At the Interbank Foreign Exchange market, the local unit resumed lower at 62.12 a dollar from last close of 61.93.
It attempted a recovery at 62.07, but soon fell to a low of 62.73 before settling at 62.66, a fall of 73 paise. This is the biggest one-day fall in rupee since November 11, 2013 when it had tumbled by 77 paise.
The last time the rupee closed at today's level was on November 22, 2013, when it finished at 62.87. Meanwhile, the benchmark BSE Sensex tumbled by 240.10 points or 1.12 per cent.
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