The rupee on Thursday declined by a hefty 54 paise to trade at an eight-and-a-half-month low of 56 at the Interbank Foreign Exchange market on sustained dollar demand and strengthening of the US currency overseas.
The rupee fell to as low as 56.01 against US dollar, its lowest since September 6, 2012.
Forex dealers said besides dollar’s gains against euro and other currencies in the overseas markets, sustained dollar demand from importers and some banks and a continued downturn in the stock market put pressure on the domestic currency.
Yesterday, the rupee had lost five paise to close at 55.46, its lowest closing since November 27, 2012.
Meanwhile, the BSE benchmark Sensex fell further by 341 points to 19,720 in mid-session trade today.