The rupee ended 15 paise lower at 59.67 against the dollar due to capital outflows and a weaker euro.
The Finance Ministry, on Monday, had indicated that it will announce some measures to boost the exports after looking at the weak first quarter export figures.
This boosted the rupee sentiments on Tuesday as it gained 8 paise in its opening trade at 59.44 as compared with the previous close of 59.52 per dollar.
The domestic unit further appreciated to 59.18 per dollar on the back inflows by foreign institutional investors into the domestic equity market.
“However, a weaker euro and dollar demand from large foreign banks weighed on the rupee. In addition, a weaker equity market due to capital outflows weakened the rupee,” said a dealer with a public sector bank. Intra-day, the Indian currency fell to 59.71 in the afternoon trades.
Meanwhile, BSE-benchmark Sensex ended down by 113 points (0.58 per cent) at 19,464 points.
According to the dealer, good sentiments with government measures might strengthen the rupee. “It is likely to trade around 58.50 to 59.5 levels this week,” he said.
