Rupee weakens to 61.77 on dollar demand…


The rupee was trading weak by 5 paise at 61.77 against the dollar at 4.07 p.m. local time due to fresh demand for dollar from importers, besides dollar’s gains against other currencies overseas.

After opening strong by 9 paise at 61.63 per dollar against the previous close of 61.72 at the Interbank Foreign Exchange market, the domestic unit hovered in the range of 61.63 and 61.77 in the afternoon trade.

The domestic unit depreciated by 17 paise to end at nearly one-month low of 61.72 against the greenback on Friday on sustained dollar demand even as domestic equities surged to new highs.

Meanwhile, the Wholesale Price Index (WPI)-based inflation for October stood at 1.77 per cent against 2.38 per cent in September and 7.24 per cent during the same month last year.

A decline in both consumer and wholesale price index inflation has increased market players’ expectations that the Reserve Bank of India (RBI) will cut rates at its next meeting due on December 2. Though many experts rule out the possibility of a rate cut, a rate cut is likely to help more inflows into the market.

Meanwhile, the BSE benchmark Sensex surged 131 points to end at a new peak of 28,177.88 on heavy buying by foreign funds and retail investors despite weak global cues.

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