Mumbai: The Indian rupee on Friday plummeted by 48 paise to close at 70.18 against the U.S. currency due to month-end dollar demand and sharp losses in domestic equities. Besides, Increased dollar demand from importers, mainly oil companies, weighed heavily on the domestic unit.
During early trade on Friday, the rupee opened lower at 69.93 against the dollar and dropped further to 70.37 in day trade. The domestic unit, however, recovered some losses and finally settled at 70.18, down by 48 paise over its previous close.
A weak dollar and fall in crude oil prices helped the rupee recover its day’s losses. Despite losses on Friday, the rupee gained 172 paise or 2.4% on weekly basis amid a slide in crude oil prices which touched USD 53.26 per barrel. The dollar index dropped by 1% to 96.55 due to concerns over weak economic growth and signs of US government shutdown.
Meanwhile, Benchmark equity indices witnessed heavy sell-off on Friday. The BSE Sensex dropped 689.60 points, or 1.89%, to 35,742.07, while the NSE Nifty slipped 197.70 points, or 1.81%, to 10,754.
On the other hand, Brent crude, the international benchmark, was trading at USD 53.34 per barrel on Friday, lower by 1.86%.