The rupee lost 14 paise on Monday to end at a fresh two-month low of 45.90/91 against the dollar on month-end demand for the US currency amid increased capital outflows.
The initial dip in the rupee value was due to early steep fall in local equities where the Bombay Stock Exchange benchmark Sensex was down by over 357 points. Besides, China, all other Asian indices too ended in the red on worries over the instability in Egypt.
Continued capital outflows weighed heavy on the rupee sentiment, they added.
FIIs pulled out $129.51 million on last Friday, taking a total over $1.0 billion in current month till January 28.
The Sensex finished the day 68 points down at 18,327.76. At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 45.97/98 a dollar from its last weekend's close of 45.76/77 and immediately crossed the 46-mark, after November 30, 2010, to touch a low of 46.05.
However, sustained month-end dollar demand from importers as well as oil refiners helped the rupee recover in the later part of the day.
The rupee later touched a high of 45.89 before concluding at 45.90/91, still lower than its previous close.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.95 and the euro at Rs. 62.54.
The initial dip in the rupee value was due to early steep fall in local equities where the Bombay Stock Exchange benchmark Sensex was down by over 357 points. Besides, China, all other Asian indices too ended in the red on worries over the instability in Egypt.
Continued capital outflows weighed heavy on the rupee sentiment, they added.
FIIs pulled out $129.51 million on last Friday, taking a total over $1.0 billion in current month till January 28.
The Sensex finished the day 68 points down at 18,327.76. At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 45.97/98 a dollar from its last weekend's close of 45.76/77 and immediately crossed the 46-mark, after November 30, 2010, to touch a low of 46.05.
However, sustained month-end dollar demand from importers as well as oil refiners helped the rupee recover in the later part of the day.
The rupee later touched a high of 45.89 before concluding at 45.90/91, still lower than its previous close.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.95 and the euro at Rs. 62.54.
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