Zee Media Bureau
New Delhi: The rupee on Friday pared its early gains and moved lower for 7th straight session by 14 paise to 64.69 against the US dollar in mid-session trade on strong demand for the American currency from banks and importers.
The rupee had ended at 64.55 after hitting a fresh low of 65.56 against the US dollar in the previous session.
The rupee is down 16 percent so far this year despite efforts by policymakers to prop it up.
Forex dealers said besides strong demand for the American currency from importers and banks, dollar's strength against other currencies overseas amid expectation that the Federal Reserve will soon taper its bond-buying programme weighed on the domestic currency.
They said several measures announced by the government and the RBI failed to check volatility in the rupee.
Weak domestic fundamentals such as record current account deficit concern too put pressure on the rupee, they said.
Federal Reserve minutes released on Wednesday also hinted that the United States may start tapering its stimulus as early as next month.
In order to arrest the rupee slide, RBI last week had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering talks of return of capital control regime.
First Published: Friday, August 23, 2013, 12:42