Mumbai: Sustained month-end dollar demand amid reduced foreign funds inflows sent the rupee sliding to a near six-month low of Rs 46.1950/2050 per dollar on Monday.
The skid came with the bearish outlook in the currency markets arising out of firm crude oil prices in the Asian markets.
Nervousness once again gripped the Inter bank Foreign Exchange market after customary month-end dollar demand exerted renewed severe pressure on the rupee amid reduced supplies from trade and FIIs inflows, said a dealer.
Opening on a firm note at Rs 46.10/12 per dollar, the rupee tumbled to multi-month lows of Rs 46.1950/2050, sharply lower from overnight five and half month closing lows of Rs46.09/10 per dollar.
Volatile stock market, month-end corporate demand and concerns on outflow of dollar by Foreign Institutional Investors (FIIs), were the main reasons behind the rupee slide, bankers said.
Firm crude oil prices at $71.73 a barrel due to concerns over the Iran nuclear issue also weighed on rupee value, they added.
FIIs sold equity shares worth $56.2 million on May 26.
FIIs have so far pulled out a massive $1.6 billion in May alone.
In cross currency trade, the Euro was quoted at Rs 59.07/09, Pound Sterling at Rs 86.18/20 and a Japanese Yen (100) at Rs 41.18/21.
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