Rupee hammered further to a new low of 53.81 vs dollar
04 May 2012
The rupee extended its fall for a third consecutive day, hitting a low of 53.81 to a dollar in afternoon trade on the interbank foreign exchange market in Mumbai today, amidst rising demand for the US currency by both importers and funds withdrawing investments in Indian shares.
The rupee's fall has also been in part attributed to a lower opening in the stock market following news of the government's move to reopen tax treaty with the Mauritius government.
FIIs based in Mauritius have been the main investors in the country's equity market and the market too has been more or less controlled by them.
The Indian unit opened 32 paise lower from yesterday's close at 53.735 a dollar, and was trading at 53.81 to a dollar at noon.
At 53.81 to a dollar the rupee has lost around 85 paise to the US currency in just three consecutive trading sessions.
The country's worsening trade deficit and a firming up of the prices of its main import items – oil and gold – also helped the sentiment.
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