Rupee hits fresh 2-month low of 62.78

In line with local equities, the rupee on Wednesday dipped for the third straight session and eased by two paise to close at fresh two-month low of 62.78 against greenback on sustained demand for US dollar from importers.

Continued slide in local equities amid fresh withdrawal of funds by foreign portfolio investors also weighed on the rupee while some dollar selling by exporters helped the rupee to cushioned the fall, forex traders said.

At the Interbank Foreign Exchange market, the Indian rupee resumed lower at 62.83 a dollar from Tuesday's close of 62.76.

It moved in a range of 62.69 and 62.87 before ending at 62.78, showing a loss of two paise or 0.03 per cent.

In three days, it has lost 62 paise.

"The Indian rupee has fallen over the last six sessions against the Dollar as the Greenback holds onto gains amid expectations of mid-year US Fed rate hike.

Investors continue to believe that Fed will adopt a hawkish stance at the upcoming policy meeting.

The only thing limiting the fall is selling from exporters and other corporates," said Suresh Nair, Director, Admisi Forex India.

The dollar index, consisting of six major global rivals, was up by 0.77 per cent.

In the New York market, the dollar rose against five of its six currencies on Tuesday as investors worried that the Fed could raise rates prematurely.

The S&P BSE Sensex today closed down by 50.70 points or 0.18 per cent in see-saw trade while FPIs sold shares worth Rs 748.13 crore on Tuesday as per provisional data.