Increased demand for US currency from importers and dollar's gains against some currencies put pressure on rupee.
FIIs head home whenever the Fed raises interest rates and this affects the rupee.
Mumbai: The rupee weakened 11 paise to 65.14 against the US dollar in early trade today at the Interbank Foreign Exchange on increased demand for the American currency from importers and banks.
Forex dealers said that increased demand for the US currency from importers and the dollar's gains against some currencies overseas put pressure on the rupee. However, a higher opening in the domestic equity market capped the rupee's losses, they said.
On Monday, the rupee had lost 18 paise to close at 65.03 against the US dollar.
Forex market remained shut yesterday on account of 'Ramnavami'. Meanwhile, the benchmark BSE Sensex breached the key 30,000-mark by surging 97.26 points, or 0.32 per cent, to 30,007.48 in the opening trade today.
Next Story
