Photo: The Hindu Business Line
Mumbai, India (BBN) - The rupee weakened 65.51 against the dollar today on fears that the tax rate decision of the GST Council will have a revenue implication of Rs. 20,000 crore annually.
Strengthening of dollar against other currencies overseas and fresh foreign fund outflows also put pressure on rupee. Dealers also attributed the rupee’s fall to increased demand for the US currency from importers and banks, reports The Hindu Business Line.
The domestic unit opened weak by 20 paise at 65.36 at the Interbank Foreign Exchange market today. It hovered in a range of 65.51 and 65.25, before quoting at 65.43, down 27 paise at 4.05 pm local time.
On Friday, the rupee had ended down 22 paise to end at a fresh one-month low of 65.16 against the US dollar due to frantic demand for the American unit from importers and corporates.
Foreign investors had pulled out around Rs. 529 crore from equity markets on Friday.
Meanwhile, the benchmark Sensex ended lower by 281 points or 0.84 per cent at 33,033.56.
BBN/MMI/ANS