ET:Rupee weakens to 10 month lows on broad dollar strength
MUMBAI: Rupee weakened to its lowest in 10 months on Wednesday tracking broad dollar gains versus global and Asian currencies.
The partially convertible rupee was trading at 56.22/23 per dollar as of 11:26 am, its weakest since July 25, 2012, and weaker than its 55.9550/9650 close on Tuesday.
The index of the dollar against six major currencies was up 0.3 percent, while the BSE share index was down 0.3 percent.
Dealers said month-end dollar demand from oil companies and other importers is also likely to weigh on the rupee.
Asian currencies were mostly trading weaker versus the dollar.
The dollar gained broadly in early Asian trade on Wednesday after robust economic data boosted Treasury yields and raised expectations that the Fed may make an early exit from its easing scheme, making the greenback more attractive.
The Nifty was witnessing a rangebound session with negative bias on Wednesday, in line with other subdued Asian peers. Gains in healthcare, auto and FMCG were offset by losses in banks, realty and power sectors. Stocks like ONGC, Tata MotorsBSE 1.10 % and BPCLBSE 0.56 % are expected to be in action ahead of their quarterly results.
