Rupee slips 33 paise against dollar to close at 62.25

March 04, 2015 06:34 pm | Updated 06:34 pm IST - MUMBAI

The rupee on Wednesday slipped by 33 paise — its fourth straight daily loss — to close at 62.25 against dollar amid RBI Governor Raghuram Rajan’s comment that an “excessively strong rupee” is undesirable as it triggers disinflationary pressures.

Heavy demand for the American currency also hit the local unit, which had earlier in the session hit one-month high of 61.67 after a surprise rate cut by RBI citing easing inflation pressures and steps taken by government to revive growth.

However, it suffered a setback on the back heavy dollar demand from importers and state-owned banks. The rupee plummeted to hit an intra-day low of 62.28 at the Interbank Foreign Exchange (Forex) market before ending at 62.25 per dollar — a fall of 33 paise, or 0.53 per cent.

In stock market, both the benchmark indices — BSE Sensex and NSE Nifty finished sharply lower at 29380.73 and 8922.65, respectively after climbing historic highs in early trade.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.