Registering its second biggest fall in 2013, the rupee today lost a staggering 50 paise to hit a one-week low of 54.36 vs the US dollar due to heavy capital outflows as Budget failed to cheer investor sentiment. Month-end dollar demand from importers, mainly oil companies, also hit the domestic currency, amid a steep fall in local equities, forex dealers said.
Previously, it had plunged by 57 paise, or 1.05 per cent on January 4, 2013. "Government proposing about Rs 17,000 crore higher net borrowing target in the Budget, which was more than street expectations, hit market sentiment to a great extent. This in turn hit the rupee. Especially, banks stocks were badly hit on concerns of tighter liquidity situation," said Mohan Shenoy, Head (Treasury) at Kotak Mahindra Bank.
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