Indian rupee hits fresh 2-month low of 62.78 against US dollar

The Indian rupee dipped for the third straight session on Wednesday, easing by two paise, to close at fresh two-month low of 62.78 against the US dollar on sustained demand for Greenback from importers.

At the Interbank Foreign Exchange (Forex) market, the Indian rupee resumed lower at 62.83 a dollar from Tuesday's close of 62.76. It moved in a range of 62.69 and 62.87 before ending at 62.78, showing a loss of two paise or 0.03 per cent.

In three days, it has lost 62 paise.

Forex traders said continued slide in local equities amid fresh withdrawal of funds by foreign portfolio investors (FPIs) weighed on the sentiment while some dollar selling by exporters helped the rupee to cushioned the fall.

The S&P BSE Sensex closed down by 50.70 points, or 0.18 per cent, in see-saw trade while FPIs sold shares worth Rs 748.13 crore on Tuesday.

"The Indian rupee has fallen over the last six sessions against the Dollar as the Greenback holds onto gains amid expectations of mid-year U.S. Fed rate hike. Investors continue to believe that Fed will adopt a hawkish stance at the upcoming policy meeting. The only thing limiting the fall is selling from exporters and other corporates," said Suresh Nair, Director, Admisi Forex India.

The dollar index, consisting of six major global rivals, was up by 0.77 per cent. In the New York market, the dollar rose against five of its six currencies on Tuesday as investors worried that the Fed could raise rates prematurely.