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Rupee hits 4-week low, plunges 18 paise to 68.24 vs USD

The rupee has lost 50 paise, or 0.74 percent, against the dollar in two days.


Rupee hits 4-week low, plunges 18 paise to 68.24 vs USD

Mumbai: Piling on yesterday's massive loss, the rupee on Wednesday fell by another 18 paise to close at a 4-week low of 68.24 on month-end dollar demand from importers coupled with sustained foreign capital outflows.

Besides, the dollar strengthening against rivals in the overseas market also added to the pressure on the domestic currency, a forex dealer said.

The rupee opened lower at 68.10 as against the last closing level of 68.06 at the Interbank Foreign Exchange market and dropped further to 68.25 before ending at a 4-week low of 68.24 per dollar, showing a loss of 18 paise or 0.26 percent.

The rupee had last ended at 68.34 per dollar on December 1, 2016.

The rupee has lost 50 paise, or 0.74 percent, against the dollar in two days.

The domestic unit hovered between 68.09 and 68.25 per dollar during the day.

"The rupee continued to trade negative with low volatility due to higher dollar overseas amid sustained capital outflows," a forex trader said.

Meanwhile, the dollar index was trading higher by 0.32 percent against a basket of six currencies in the late afternoon trade.

Overseas, the dollar inched up against the yen today after upbeat US economic data reinforced expectations for economic growth under Donald Trump's Administration and more rate hikes by US Federal Reserve next year.

Meanwhile, the benchmark Sensex ended barely steady at 26,210.68.

In forward market today, the premium for dollar fell further on sustained receivings from exporters.

The benchmark six-month premium payable in May dropped to 123-125 paise from 128-130 paise yesterday and far forward November 2016 contract also went down to 269.5-271.5 paise from 274.5-276.5 paise.

The RBI fixed the reference rate for the dollar at 68.2250 and for the euro at 71.4520.

In cross-currency trades, the rupee held stable against the pound sterling to close at 83.43 while it rebounded against the Euro to settle at 71.07 as compared to 71.12 per euro.

It also rose against the Japanese Yen to 57.93 per yen from 58.02 previously.

From Zee News

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