Rupee weakens to 61.50 in early trade

The rupee lost 19 paise to 61.50 against the dollar in early trade at the Interbank Foreign Exchange market today due to appreciation of the US currency against other currencies overseas ahead of the Federal Reserve policy decision.

Increased month-end demand for the dollar from importers also put pressure on the rupee but a higher opening in the domestic equity market capped the fall, forex dealers said.

The rupee had gained 21 paise to close at 61.31 against the dollar in yesterday’s trade after the RBI hiked a key interest rate to curb the price rise and enhanced the liquidity for banks.

Meanwhile, the BSE benchmark Sensex regained 21,000 level by rising 100.25 points or 0.48 per cent to trade at 21,029.26 in early trade today.