Mumbai, May 19: The rupee today closed at a three -month low of 46.36/37 against the dollar, after tanking 77 paise–the biggest single-day fall in more than 14 months–on heavy demand for the US currency from banks and importers.
There was massive demand for the dollar at the Forex market here in tune with its substantial gains overseas amid a sharp fall in its rival euro. The domestic unit opened sharply lower at 45.85/86 and dropped further to settle at 46.36/37, a sharp fall of 1.69 per cent from its last close of 45.59/60.
The dollar has been gaining against the already battered euro for quite some time now on fears that the Eurozone crisis is spreading across the globe, as Germany banned short-selling on government bonds and ten other instruments, besides the EU decision to rein in hedge funds and PE funds.
–Agencies