Mumbai, India (BBN)- The Indian rupee weakened by 12 paisa to 66.83 at the Interbank Foreign Exchange market Thursday as the US dollar remained in the driver’s seat on the growing buzz that the US interest rate is set to go up.
The Fed is meeting next week to take a call on this, reports The Hindu Business Line quoting PTI.
A higher US rate means flight of investors from emerging markets in search of higher returns.
Apart from the increased demand for the American currency from importers and banks, its strength against other currencies overseas pulled down the rupee.
Also, a weak domestic equity market affected the rupee sentiment.
Yesterday, the rupee had weakened 4 paisa to 66.71 in a relatively muted trade on renewed demand for the greenback.
Meanwhile, the benchmark BSE Sensex fell 86.92 points or 0.3 per cent to 28,815.02 in early trade.