Rupee Slumps to Nearly 5-Month Low of 61.50/Dollar

The Indian rupee fell to a four-and-half month low against the dollar on Wednesday. The partially convertible currency slumped to 61.50 per dollar, its lowest since March 14.

The reverses in the rupee came on the back of a rising dollar, which hit its highest against a basket of currencies since last September. The US dollar gained tracking positive data in the US economy.

(Also read: Rupee seen at 75-85 per dollar)

Heavy dollar buying by foreign banks also contributed to rupee's weakness, dealers said.

Weakness in domestic stock markets also impacted the rupee. The Sensex and Nifty ended nearly 1 per cent lower, tracking weakness across global markets.

Sentiment has also been impacted because overseas investors seem to be pulling back money from the country. Foreign institutional investors have bought Indian stocks in small quantities this week after selling cash shares worth over Rs 3,000 crore last week. In the debt market, FIIs sold a net of over Rs 2,700 crore on Friday and Monday.

(With inputs from Reuters)