Rupee hits three-month low in opening trade

the local currency had lost by 8 paise to end at 64.87 against the American unit on sustained dollar demand

Falling for the third straight session, the rupee weakened by 23 paise to 65.10 against the US dollar to hit its three-month low in opening trade at the forex market today.The dollar firmed up against select global currencies as US Federal Reserve Chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.

Forex dealers said sustained month-end demand for the American currency from importers, foreign fund outflows and the dollar’s gains against other global currencies weighed on the rupee. Investors were also cautious ahead of GDP and IIP numbers to be released later in the day.

Yesterday, the local currency had lost by 8 paise to end at 64.87 against the American unit on sustained dollar demand from importers and banks amid heavy capital outflows. Meanwhile, the benchmark BSE Sensex fell 258.09 points, or 0.75 per cent, to 34,088.30 in the early trade.