Mumbai: The rupee dropped for a second day on Tuesday, falling to a one-week low as a slide of nearly 3% in the stock market fuelled worries of a revival in risk aversion among foreigners.
It closed at 50.52/53 per dollar, off the day’s low of 50.57, but still 0.6% lower than Monday’s close of 50.23/25. The currency, which has risen for the past seven weeks, has fallen 1.4% over the first two days of this week. Indian financial markets are shut on Thursday and Friday.
“It was largely tracking the stocks today, and it being the month-end there was also some import demand,” a senior dealer with a state-run bank said.