The Indian rupee fell by 18 paise to Rs 44.25 per U.S. dollar on Tuesday on fresh demand for the American currency from banks and importers amid weakness in the domestic equity market.
At the Interbank Forex Exchange, the rupee resumed lower at Rs 44.20/21 per dollar as against the previous close of Rs 44.07/08 per dollar and moved down further to Rs 44.25 at 10.30 hours (IST).
The rupee moved in a range between Rs 44.17 and Rs 44.25 per dollar in morning deals. Forex dealers said fresh dollar demand from banks and importers as well as oil refiners and a lower opening in the domestic stock market mainly put pressure on the rupee.
In New York, the dollar extended its losses to fall to a record low against the Swiss franc and within a hair of its all-time low versus the Japanese yen on Monday after surprisingly weak U.S. manufacturing data prompted investors to abandon stocks and shift into assets considered safer.
Meanwhile, crude prices inched higher in Asia on Tuesday with markets taking a breather after volatile trade a day ago as bearish U.S. manufacturing data quashed the initial euphoria over a debt deal, analysts said.
New York’s main contract, light sweet crude for September delivery, gained 40 cents to USD 95.29 a barrel. The Bombay Stock Exchange benchmark Sensex was down by 180.41 points, or 0.99 per cent, at 18,133.92 at 10.15 hours (IST).
