16/12/2014
Heavy dollar demand by foreign investors, who are liquidating their holdings in India, and an 18-month-high trade deficit, pushed the rupee to a 13-month low on Tuesday.
In intra-day trade, the Indian rupee fell to 63.59 a dollar, a level last seen on 13 November 2013. It had opened at 63.25 a dollar. The local currency ended at 63.54 per dollar, down 0.73% from its Monday’s close of 62.95. The rupee fell in six out of the last seven trading sessions.
“Rupee came under pressure due to equity and debt related sell-off,” said Paresh Nayar, head of fixed income and currencies at First Rand Bank Ltd.
High dollar demand, 18-month-high trade deficit pushed the rupee to 13-month low of 63.59 a dollar, before it ended at 63.54 per dollar, down 0.73% against Monday’s close
