Rupee plunges 45 paise to close at 83.59 against US dollar

The rupee tumbled 45 paise to close at 83.59 (provisional) against the US dollar on Tuesday as the ruling BJP is unlikely to muster an absolute majority in the Lok Sabha elections

The rupee tumbled 45 paise to close at 83.59 (provisional) against the US dollar on Tuesday as the ruling BJP is unlikely to muster an absolute majority in the Lok Sabha elections.

Besides, a massive sell-off in domestic equities and a strong greenback against major currencies overseas added to the gloom, forex traders said.

At the interbank foreign exchange market, the local unit opened weak at 83.25 and oscillated between a high of 83.23 and a low of 83.59 against the greenback during the session.

The domestic currency finally closed at 83.59 (provisional) against the dollar, registering a fall of 45 paise from its previous close.

On Monday, the rupee closed at 83.14 against the US dollar.

"The rupee depreciated...today as domestic markets fell sharply amid uncertainty over election results outcome. This may have also led to some sell-off by foreign investors. The US dollar recovered from yesterday's losses on the weak Euro, which fell on disappointing employment data. The US dollar fell on Monday on weaker than expected ISM manufacturing PMI and construction spending," Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 104.25.