` LOSES 22P TO END AT 7-MONTH LOW OF 61.75 AGAINST $

MUMBAI: The rupee fell to a seven-month low on Tuesday as strong demand for the dollar from importers and a weak trading sentiment spooked investors.

The Indian currency closed at 61.76, very near to the day’s low of 61.77, as the US greenback gained against most currencies globally on the back of positive economic growth in the US.

“The rupee is the not the only currency to have come under the hammer. The dollar has been very strong of late and this has pulled down most other currencies in the world,” said Anindya Banerjee, an analyst with Kotak Securities.

The dollar has been gaining in strength after recent data showed that the US economy expanded at 4.6% in the second financial quarter, the fastest pace since 2011.

Also, the demand for dollars from crude oil importers has put a pressure on the rupee as the companies lined up to buy the US greenback to meet monthend import commitments. India imports nearly 70% of its crude oil requirements and has to pay in dollars.

“Globally, investors are finding the US dollar to be a better asset class than any other asset and that is the reason for the rise in the dollar value. While the rupee has been performing well against other assets, against the dollar it has been weak,” said Vinod Nair, head of fundamental research, Geojit BNP Paribas.

Meanwhile, the benchmark Sensex surrendered most of its early gains to close 33.40 points, or 0.13%, higher to 26,630 as profit-booking emerged in power and metal shares ahead of long holidays for markets. Nifty firmed up by 8.90 points to 7,965.