Forex Update: Rupee plunges to 7-week low vs US dollar, down 38 paise at 61.34

Dropping for the fourth straight day, the rupee on Thursday fell 38 paise to end at seven-week low of 61.34 against the Greenback following slump in local shares and sustained month-end dollar demand from importers.

A sharp rise in dollar value overseas, including the Euro after a set of solid data in the US, also weighed on the rupee that on Thursday logged worst single-day fall since September 15.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced slightly better at 60.94, which was also the day's high, from previous close of 60.96.

Rupee, however, started losing ground in line with weakness in stocks and touched a low of 61.4150 - a level not seen since August 8, 2014 when it had registered intra-day low of 61.74.

Finally, the Indian currency settled at seven-week low of 61.34, logging a steep fall of 38 paise or 0.62 per cent. This closing is the rupee's weakest since 61.49 on August 6, 2014.

In four straight days, the rupee has stumbled by 86 paise or 1.41 per cent. Suresh Nair, Director, Admisi Forex, said: The rupee depreciated as upbeat US home sales data fuelled further expectations for an early rate hike by the Federal Reserve .

The rupee also weakened as state-run banks bought dollars, possibly on behalf of exporters. Month-end importer demand also weighed on the rupee. The Indian benchmark S&P BSE Sensex on Thursday plunged by 276.33 points, or 1.03 per cent to one-month lows.

FPIs/FIIs sold shares worth $112.91 million on Wednesday, as per Sebi data. The dollar index was up by 0.37 per cent against a basket of six major global currencies after US housing data showed strong surge.

Pramit Brahmbhatt, Veracity Group CEO said, "The trading range for the spot rupee is expected to be within 60.80 to 61.80".