MUMBAI: The rupee weakened by 12 paise to 65.09 against the dollar in early trade today due to month-end demand for the US currency from importers.
Besides, the dollar’s gain against other currencies overseas and a lower opening in the domestic equity market put pressure on the rupee, forex dealers said.
Yesterday, the rupee ended barely steady at 64.97 per dollar at the Interbank Foreign Exchange market.
Meanwhile, India Ratings on Monday said it expects the rupee to appreciate to the 64.5 level this week on expectations of a rally in the emerging market currencies.
“We expect a ‘risk-on’ rally globally to support emerging market currencies this week. The rupee, after trading in a narrow band of Rs 64.73-65.22 against the dollar last week, is likely to appreciate and inch closer to 64.5 to the dollar,” said the domestic rating agency in a note.
