Mumbai: The rupee on Monday weakened by 65 paise to close at nearly 11-month low of 62.94 against the US dollar due to heavy dollar demand from importers amid falling crude oil prices.
A stronger US dollar in global markets ahead of the US Fed's meeting starting on Tuesday also weighed on the domestic currency, dealers said.
At the Interbank Foreign Exchange market, the rupee commenced weak at 62.50 a dollar from previous close of 62.29.
A sudden gust of dollar demand from importers, mainly oil refiners, after global crude oil prices fell to near US dollar 62 a barrel weighed on the domestic unit which dropped to a low of 62.95 in day trade.
Later, the rupee settled at 62.94, showing a fall of 65 paise -- the biggest fall in last four months -- or 1.04 per cent.
Previously, it had settled at 63.10 on January 27, 2014. The Indian benchmark BSE Sensex, which was down by over 245 points at initial stages, recovered and closed slightly lower by 31.12 points or 0.11 per cent.
Foreign portfolio investors sold shares worth US dollar 128.75 million on Sunday, as per Sebi data.
Pramit Brahmbhatt, Veracity Group CEO said, "Indian Rupee slipped down by over 1 per cent for the day; taking cues from the dollar demand from oil companies and almost made a 11 months low.
"The trading range for the spot rupee is expected to be within 62.50 to 63.50," he added.
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