The rupee was trading weak by 49 paise at 61.93 against the dollar at 2.27 p.m. local time due to renewed demand for dollar from banks and importers and weakness in the domestic equity market.
The local unit shed 13 paise to 61.57 per dollar in the opening trade against the previous close of 61.44.
On Friday, the rupee had appreciated significantly after demand for the greenback dampened as US lawmakers failed to resolve a budget impasse.
Dollar outflows
The move is likely to further delay the US Fed’s tapering plan of its $85-billion monthly monetary stimulus. This is expected to restrict the dollar outflows from emerging markets such as India.
“The rupee has seen some stability and will strengthen from here on with more dollar inflows expected to come from the FCNR swap and tier-I capital borrowing window for banks,” said N. S. Venkatesh, Head- Treasury, IDBI Bank. By October-end, the rupee may touch 60.50 levels, he added.
