Rupee slumps to 60.80 on capital outflows, dollar demand

MUMBAI : The rupee weakened by 26 paise to 60.80 against the dollar at 10.50a.m. local time. The domestic lost 22 paise to over three-month low of 60.76 against the US dollar in early trade at the Interbank Foreign Exchange market today on increased capital outflows amid demand for the American currency from importers.

Besides, a weak trend in other currencies against the dollar overseas and a lower opening in the domestic equity market put pressure on the local unit, forex dealers said. The US dollar index, measured against a basket of currencies, was trading strong at 81.48, up 0.02 per cent.

The domestic currency had lost 49 paise to close at a three-month low of 60.54 yesterday on capital outflows after the US Fed trimmed its monthly bond buying programme by another $10 billion.

Meanwhile, the benchmark BSE Sensex was down by 187.69 points or 0.72 per cent to 25,707.28 in early trade.

Source : thehindubusinessline.com