FOREX UPDATE: Rupee falls to 3.5-week low on strong dollar sentiment

The Indian rupee dropped to nearly 3-1/2 weeks low to close at 61.62 against US currency weighed by sustained dollar demand from importers amid strong overseas sentiment.

The renewed strength of dollar is keeping emerging market currencies under immense pressure, a forex dealer commented.

Despite robust funds inflows, volatile local equities also added pressure on the rupee front.

At the Interbank Foreign Exchange market (Forex), domestic unit commenced lower at 61.52 a dollar as against Wednesday's close of 61.41 and moved in a range of 61.4875 and 61.6750 before finishing at 61.62, showing a loss of 21 paise, or 0.34 per cent.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1,030.85 crores on Wednesday, as per provisional data released by the stock exchanges.

The US Greenback surged to more than five-year high against major curriencies following upbeat US jobless data as well as record breaking rallies in equties.

Meanwhile, the benchmark Sensex retreated from its record-breaking run and settled lower at 27,868.63, down 47.25 points or 0.17 per cent.