LM:Rupee weakens to 61.91 per dollar on inflow concerns
Mumbai: The Indian rupee weakened on Monday, tracking the fall in the local stocks and Asian currencies.
Slowing of foreign fund inflows in the event of a possible deterioration in the global economic situation also affected sentiment, dealers said.
At 2.30pm, the local unit fell 0.76% to 61.91 per dollar. The Indian currency opened at 61.51 per dollar.
“The equity market is weak amid global concerns and that’s what’s hitting the rupee,” said Vikas Babu, a trader at state-run Andhra Bank in Mumbai. “Inflows are essential for India and so sentiment is a bit weak.”
The rupee had gained 1.7% last week.
Since January this year, the rupee has weakened 11.13% and has lost the second most after the Indonesian rupiah among Asian currencies. The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.948, down 0.22% from the previous close of 80.122.
BSE’s benchmark Sensex fell 0.49% to 19,819.07 points. The yield on India’s 10-year benchmark bond was at 8.636% from previous close of 8.623%.
