Indian rupee down 34 paise against US dollar

The Indian rupee on Monday lost 34 paise to 54.35 against the US dollar in early trade at the Interbank Foreign Exchange, due to increased dollar demand from importers and appreciation of the US currency overseas.

The domestic currency had gained 34 paise to close at a two-week high of 54.01 on Friday on robust capital inflows and heavy selling of the American currency by exporters.

Forex dealers said a weak opening in the domestic stock market also put pressure on the local currency.

Dollar strengthening against euro on reports that Cyprus would have to tax bank customers' deposits as part of an EU bailout deal, mainly pulled down the rupee, they added.

The BSE Sensex was trading at 19,279.34 in late morning trade, down 148.22 points or 0.76 per cent on Monday.

VIKAS KUMAR GUPTA
PGDM 2ND SEM