Rupee hits 4-month low against dollar, drops 31 paise

The rupee today dropped by 31 paise to a four-month low level of 65.12 against the US dollar on frenetic dollar demand from importers and banks.

Dealers said early losses in domestic equity markets and unabated foreign fund outflows weighed on the rupee.

Yesterday, the rupee plummeted by a whopping 54 paise to end at 64.81 a dollar, its weakest level in over two-and-half months after the US Federal Reserve left the door open for a rate hike in December.

The benchmark BSE Sensex drifted further lower by 231.79 points, or 0.72  per cent, to 32,138.25 in early trade today.