Rupee opens weak again; drops 24 paise

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, July 18, 2013, 9:14 [IST]

The rupee opened weak again, hitting 59.58 against the dollar, a drop of 24 paise over Wednesday's close.

On Wednesday the rupee showed signs of weakness despite RBI actions to increase the MSF requirements for banks. Dealers are now worried that even the latest RBI actions have had very little impact to push the rupee higher.

Over the course of the year, sustained foreign flows help keep the rupee from falling, however, since foreign funds have withdrawn money in the last one month the rupee has seen a sharp fall.

Analysts fear that any hints of withdrawal of quantitative easing in the US could see the rupee tumbling.

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