Mumbai: The rupee slumped below the 67 rupees on Monday to a 27-month low as the uncertainty over the much anticipated interest rate hike of the US Federal Reserve between strong global perception.
Due to the huge demand for the dollar in the inter-bank foreign exchange market, the rupee was weak at Rs 67.09 a dollar and was reduced to Rs 67.12 per dollar till noon. Finally, a fall of 21 paise, or 0.31 percent, closed at Rs 67.09 a dollar.
In view of the possibility of increasing the rate of interest for the first time after almost a decade, the rupee business has affected the concerns about capital clearance. However, the rise of the local stock market ignored the potential negative impact of higher interest rates in the background of an enormous macroeconomic environment and reduced the losses to some extent.
Foreign currency traders said that pressure on the rupee due to the demand of the dollar and the devaluation of the Chinese Yuan by the importers and the banks.
