Rupee falls 31 paise vs US dollar to one-week low of 61.41

MUMBAI: Tracking equity markets, the Indian rupee today wiped out initial gains and ended 31 paise down at a one-week low of 61.41 against the greenback on fresh dollar demand from banks and importers.

Persistent foreign capital outflows also affected the the rupee sentiment, forex dealers said.

The rupee opened higher at 60.94 per dollar as against the last closing level of 61.10 per dollar at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by banks following overnight losses in the New York market.

However, the rupee washed out initial gains and ended lower at 61.41 per dollar on heavy dollar demand from importers in view of a firm dollar overseas, registering a loss of 31 paise or 0.51 per cent.

Intra-day, it moved in a range of 60.93 per dollar and 61.46 per dollar. Today's closing of 61.41 is the lowest since 61.43 on October 7.

"Supported by lower CPI and WPI data for September the rupee started the Tuesday session strongly...Demand for dollars from defence companies and importers weakened the Rupee. The fall was arrested on reports of RBI selling dollars in the spot market. Caution remained ahead of elections in Maharashtra state on Wednesday," said Suresh Nair, Director, Admisi Forex.

In London market today, the dollar recovered its footing in Europe after falling to its lowest in a month against the yen amid deepening worries over global growth and a sell-off in equities.

Meanwhile, the Indian stock benchmark Sensex ended lower by 34.74 points, or 0.13 per cent, to end at 26,349.33.

Forex and money markets will remain closed tomorrow on the account of voting for single-phase Assembly Elections in Maharashtra.