The Indian rupee tumbled 69 paise to a nearly 2-year low to 64.88 on sustained dollar demand from banks and importers in view of a higher dollar overseas following yuan devaluation.
The rupee resumed lower at 64.55 per dollar as against yesterday’s closing level of 64.19 at the Interbank Foreign Exchange (Forex) market and dropped further to a nearly 2-year low at 64.88 at one point.
China’s surprise decision to devalue the yuan sparked a sell-off in global currencies. The ones that were worst hit were those from economies whose exporters either rely on Chinese companies to buy their products or compete with their exporters for customers.
Oil prices extended losses in Asia today as Chinese economic worries and oversupply concerns added to the downward pressure, analysts said.
US benchmark West Texas Intermediate (WTI) for September delivery fell five cents to USD 43.03 while Brent for September slipped 35 cents to USD 48.83.
Persistent fall in equity market also affected market sentiment. The Sensex was trading at 27,688.59, down 177.50 points, or 0.64 per cent.