NEW DELHI – The rupee fell by 17 paise to touch a fresh two-month low of 54.78 against the dollar in early trade at the Interbank Foreign Exchange, due to increased demand for the American currency from oil importers.
Besides, euro’s weakness against the dollar overseas on renewed worries about Greece’s debt crisis and US presidential elections also put pressure on the local unit, forex dealers said.
The rupee had plunged by 80 paise to close at over eight-week low of 54.61 on massive dollar demand from banks and importers amid a sharp rise in the American currency overseas.
Rising for fifth straight day, the BSE benchmark Sensex closed 54 points higher at 18,817.38 helped by jump in Cipla shares after robust earnings and good gains in banking stocks, including HDFC Bank and SBI, ahead of the festive season.
“Cipla was up by about 4 per cent following its robust Q2 numbers. Banking and power were the other major gainers. Auto sector was down today,” said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
Banking and financial shares – HDFC, SBI and HDFC Bank – gained in the 0.5-1 per cent range on hopes of robust loan demand during festive season. RIL and Infosys also ended up.
Overall, the stock markets saw rise in realty and banking sectors while auto and capital goods saw some selling.
The 50-share NSE benchmark Nifty closed 20.20 points, or 0.35 percent, higher at 5,724.40.
Globally, stock markets remained mixed as investors sought the safety of dollar before the U.S. Presidential polls and a Greek parliamentary vote on key austerity measures.
