Rupee hits fresh 1-month low of 62.31 against dollar

The rupee extended its fall for the fourth consecutive day by losing another 6 paise to hit a fresh one-month low of 62.31 on persistent demand for the American currency from banks and importers in view of sustained foreign capital outflows.

Higher dollar in New York also affected the rupee sentiment in the forex market.

The Indian currency resumed lower at 62.39 per dollar as against the yesterday's close of 62.25 at the Interbank Foreign Exchange (Forex) market here.

It further dropped to Rs 62.47 on heavy bouts of dollar demand from dealers and importers before ending at one-month low of 62.31, showing a loss of six paise.

The local currency ended at 62.32 per dollar on Jan 9, 2015.

It has dropped by 62 paise or 1.01 per cent in the last four days.

The rupee hovered in a range of 62.47-62.20 per dollar during the day.

Pramit Brahmbhatt, CEO at Veracity Group, said, "To start the day Indian Rupee depreciated and fell to one-month low against the dollar as rising speculation over the chances of a US rate cut is picking up and is reducing the demand for Indian assets."

Towards the end, the domestic unit tried to recover with the help of strong local equities and managed to close at 62.31, he added.

The trading range for the Spot USD/INR pair is expected to be within 61.90 to 62.70