Rupee down 23 p to one-week low of 53.91

The rupee dropped by 23 paise to settle at one-week low of 53.91 against the greenback on heavy dollar demand from importers, amid some hesitancy in local stocks. Firm dollar overseas also weighed on the rupee, while continued foreign funds inflow in equities restricted the fall to some extent, a forex dealer said.

The rupee commenced weak at 53.85 a dollar from last Thursday's close of 53.68 at the forex market and moved erratically in a narrow range between 53.75 and 53.95 before concluding at 53.91, showing a fall of 23 paise or 0.43%. The Sensex moved in a narrow breadth before finishing almost flat ahead of the Reserve Bank of India's (RBI) third quarter monetary policy. Month-end dollar from importers affected the rupee sentiment.

The dollar index, a gauge of six major global currencies, was up 0.12%. After appreciating for the last couple of sessions, rupee started depreciating against the US dollar. Rupee was seen weakening despite the strong recovery in the euro. The month-end demand for dollars from the importers is putting some pressure on the rupee. "The rupee was seen trading in the range of 20 paise. The dollar index was higher, rupee was seen depreciating against the US dollar. This points towards the inherent weakness in the rupee. Tuesday's RBI policy will be the important event to watch for," said Abhishek Goenka, founder & CEO, India Forex Advisors.

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