Rupee logs biggest loss in 3 weeks, down 36 p at 62.20 vs USD

Regional currencies like the Yen slid to its weakest levels this month amid reports that Bank of Japan said it will continue monetary easing to meet its inflation target.

Some analysts suggested that rupee's depreciation today was linked to fears that fiscal projections in interim budget may not be met.

“FY14 fiscal deficit was contained at 4.6 per cent of GDP. FY15 fiscal deficit is placed at 4.1 per cent. We see 50-100 bps upside risk to fiscal projections. Centre's net borrowing, at Rs 4919 billion, came in line with expectations.

In our view, there are upside risks to government issuance,” said a Bank of America Merrill Lynch report.

FIIs had injected USD 83.91 million yesterday as per Sebi data.