The Indian unit also fell as part of weakness in other Asian currencies against the greenback today. Pressure on the euro may also hurt the rupee.
The rupee fell sharply on Monday, as local stocks slumped amid an ongoing selloff in world equities, and as the dollar advanced in the overseas markets.
The Indian unit also fell as part of weakness in other Asian currencies against the greenback today. Pressure on the euro may also hurt the rupee.
But, reports said that demand from local companies ahead of the advance tax payments on June 15 could keep a check on the rupee's fall.
At 12:05 pm (IST), the partially convertible Indian currency was last quoting at 44.87 per dollar. It had earlier been as low as 44.89 and as high as 44.8350.
The rupee had closed at 44.72 on Friday.
India's benchmark stock index, the BSE Sensex, fell as much as 0.8% in the morning trade before recovering some of the lost ground in early afternoon trade.
The MSCI Asia Pacific Index of regional shares fell 1% after the MSCI World Index sank 1.5% on June 10, and the Thomson Reuters/Jefferies CRB Commodity Price Index slipped 0.8%.
The advance tax outflow from the banking system is expected to be roughly around Rs. 300-400bn and is likely to return in the form of government spending in coming weeks
