Rupee loses on defence-related USD demand

Last Updated: Thu, Sep 13, 2012 07:13 hrs
An employee arranges Indian currency notes at cash counter inside a bank in Agartala

The rupee extends losses to 55.44/445 versus its previous close of 55.21/22. Traders cite government-driven demand for dollars, which they say could be tipped to defence payments.

Some short-covering from banks also seen in early trade, following the pair's fall to three-week lows in the previous session, dealers add.

Traders expect 55.55 to be the top for the USD/INR ahead of the U.S. Federal Reserve's meeting outcome later in the day and domestic inflation due on Friday.

More from Sify: