Rupee nose-dives

The rupee nose-dived to a one-month low against the US currency, pulled down by hectic month-end dollar demand amidst renewed fears of a cash dollar shortage in volatile trade at the interbank foreign exchange (forex) market. Declining by a massive 25 paise from the overnight finish of 45.15/16, the rupee closed at 44.39/41 per dollar after testing lows of 44.47/49 in late afternoon trade due to the usual month-end pressures, dealers said. It opened distinctly weak at 44.1750/1950 per dollar, reflecting the US currency’s rise against major global rivals.

The rupee rallied by 6-1/2 paise on Wednesday, following Tuesday’s 19 paise plunge due to frenzied dollar demand, fuelled by exit polls predicting a hung parliament.