Mumbai: The Rupee weakened by 26 paise to 65.96 against the dollar in early trade at the Interbank Foreign Exchange market, due to dollar demand from importers and slowing economic growth in the April-June quarter in the country.
Besides increased demand from importers for the U.S. currency, slowing economic growth, which slipped to 4.4 per cent in the April-June quarter, the slowest pace in at least four years and dollar’s strength against other currencies, put pressure on the domestic currency, Forex dealers said.
They said, however, a higher opening in the domestic equity market, capped the rupee’s fall.
It had gained 85 paise to close at 65.70 against the US Dollar on Friday, boosted by the Prime Minister’s assurances in Parliament on combating the currency’s fall and reviving economic growth.
Meanwhile, the BSE benchmark Sensex rose by 132.65 points, or 0.71 per cent, to 18,752.37 in early trade today.