The rupee today (May 31, 2012) tumbled by 26 paise to trade at a new low of Rs56.50 against the US dollar in early trade on increased capital outflows and strong demand from importers for the American currency.
Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a two-year low on continued euro zone worries and strong month-end demand from importers, particularly oil refiners, mainly put pressure on the rupee.
Yesterday, the rupee had lost 57 paise to close at a low of 56.24 despite RBI's efforts to prop it up.
....more info
Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a two-year low on continued euro zone worries and strong month-end demand from importers, particularly oil refiners, mainly put pressure on the rupee.
Yesterday, the rupee had lost 57 paise to close at a low of 56.24 despite RBI's efforts to prop it up.
....more info