Rupee hits 1-month low at 54.95/USD

The yen on Monday continued its fall against the dollar and euro, giving investors a green light to continue selling the Japanese currency.

The rupee on Monday lost 15 paise to hit a fresh over one-month low at 54.95 against the dollar in early trade on the Interbank Foreign Exchange market due to appreciation of the US currency against other currencies in the global markets.

Also read: CPI inflation slows to 9.39% in April

The rupee sentiment was hit by selling in commodities that was triggered by a strong dollar, which rose to a fresh four-and-a-half-year peak against the yen on the back of growing confidence in the US economy.

The yen today continued its fall against the dollar and euro, giving investors a green light to continue selling the Japanese currency.

Increased demand for the dollar from banks and importers and weak local equities also put pressure on the rupee, forex dealers said.

The rupee had closed down by 55 paise at 54.80 to hit a month's low in Friday's trade due to fresh dollar demand from importers amid firm global cues.

Meanwhile, the BSE benchmark Sensex fell by 71.11 points, or 0.35 percent, at 20,051.21 in early trade today.