Indian rupee weakens by 26 paise to 65.96 against dollar.

The Indian rupee weakened by 26 paise to 65.96 against the dollar in early trade at the Interbank Foreign Exchange market, due to dollar demand from importers and slowing economic growth in the April-June quarter in the country.

Besides increased demand from importers for the US currency, slowing economic growth, which slipped to 4.4 per cent in the April-June quarter, the slowest pace in at least four years and dollar's strength against other currencies, put pressure on the domestic currency, forex dealers said.

They said, however,a higher opening in the domestic equity market, capped the rupee's fall.

It had gained 85 paise to close at 65.70 against the US Dollar on Friday, boosted by the Prime Minister's assurances in Parliament on combating the currency's fall and reviving economic growth.

Meanwhile, the BSE benchmark Sensex rose by 132.65 points, or 0.71 per cent, to 18,752.37 in early trade today.

(Reuters) The rupee opened lower on Monday tracking weakness in the offshore non-deliverable forward markets but traders expect some recovery tracking other Asian currencies and domestic shares.

The Sensex was trading up 0.4 per cent in pre-open trade.

The partially convertible rupee was trading at 65.87/88 per dollar at 0343 GMT, off the low of 66.15 but still weaker than its close of 65.70/71. The one-month offshore non-deliverable forward contract was trading at 66.87.

Source : indianexpress.com