Rupee extends losses, falls 28 paise

Extending losses for the third day in a row, the Indian rupee on Wednesday dropped by another 28 paise to close at a fresh 2-month low of 50.67/68 against the Greenback on sustained dollar demand from importers and some banks, mainly foreign.

However, firm local equities amid sustained capital inflows and weak dollar overseas failed to keep check on the rupee fall, a fored dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened weak at 50.50/51 a dollar from previous close of 50.39/40 and immediately touched a low of 50.70 on initial hesistancy in local stocks.

However, it recovered in line with domestic equities to a high of 50.4150 only to fell back to settle at 50.67/68, lowest closing since January 17, 2012, a net fall of 0.56 per cent.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The rupee witnessed a choppy trade creating and revisiting new intraday high and lows during the session. The day started on a weak note weighed by overnight strengthening of Euro. The rupee hit a two week low of 50.70 in intraday and some profit booking and exporters selling has been witnessed which pushed the prices towards new intraday lows."