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Rupee Ends at 2-Week Low of 66.82/Dollar

After a brief overnight calmer, the rupee once again turned shaky against the US dollar and closed at 66.82 - its lowest level in more than two-weeks - on the back of frantic demand for the American currency.
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Rupee Ends at 2-Week Low of 66.82/Dollar
Mumbai: After a brief overnight calmer, the rupee once again turned shaky against the US dollar and closed at 66.82 - its lowest level in more than two-weeks - on the back of frantic demand for the American currency.

Sustained capital outflows against the backdrop of sliding equities and buoyant dollar overseas largely impacted trading sentiment.

Volatile currency market sentiment across Asia following a fresh round of China's yuan depreciation further added to gloom.

The home currency resumed modestly lower at 66.69 from Tuesday's closing level of 66.60 at the interbank foreign exchange (forex) market.

Later, it drifted sharply to hit a fresh intraday low of 66.84 on heavy dollar demand from banks and importers amid a sharp fall in the domestic equity market, before concluding at 66.82, revealing a steep loss of 22 paise, or 0.33 per cent.

The local unit briefly touched a high of 66.66 during the early trade.

In worldwide trade, the dollar edged higher against the other major currencies, as heightened concerns over global geopolitical tensions continued to dampen demand for riskier assets after North Korea confirmed that it had conducted a nuclear test.

The dollar index, which tracks the world's reserve currency against a basket of its peers, is up marginally by 0.03 per cent at 99.48.

The Sensex tumbled by over 174 points to end at 25,406.33, while the broader Nifty shed 43.65 points to close at 7,741.

Foreign investors remained net sellers and sold shares worth Rs 352.42 crore on Tuesday, provisional data showed. In forward market, premium for dollar continued to decline due to sustained receivings from exporters.

The benchmark six-month premium payable in June moved down to 200-202 paise from 202-203 paise and far forward December 2016 contract also edged lower to 411-413 paise as compared to 412.5-413.5 paise on Tuesday.

The Reserve Bank of India fixed the reference rate for the dollar at 66.7165 and for the euro at 71.7002.

In cross-currency trades, the rupee drifted back against the pound sterling to close at 97.92 from overnight finish of 97.74 and retreated against the euro to settle at 71.82 from 71.69 earlier.

The local unit also fell back against the Japanese yen to end at 56.48 from Tuesday's level of 55.94 per 100 yen.

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