The Indian rupee has fallen to low of 62 against the US dollar during the intra-day trading on Friday prompting a response from the central bank in the country.

The Indian rupee closed at 61.71 a dollar compared to the previous close of 61.44 in intraday trading. The currency opened at at 61.35 and touched a high of 61.33 and a low of 62.01 in the market. The Reserve Bank of India (RBI) has stepped in to sell dollars to support the rupee and prevent its free fall against the US currency in the foreign exchange markets.

The rupee was under pressure as foreign investors withdrew their investments from the domestic stock markets and took away dollars form the Indian market. The demand for the US dollar remains high among the oil marketing companies in the country.

The stock market fell following positive data from the US indicating that the US Federal Reserve might start rolling back its fiscal stimulus package. India’s benchmark equity index Sensex fell 3.97 per cent or 769.41 points to 18598.18 from the previous close. The dollar index, which measures the US currency’s strength against major currencies, rose 0.07 per cent to 81.238.

Source: Top News