Indian rupee closed 40 paise down at 66.94 against the US dollar on Thursday on account of increased demand for the American currency from importers and banks. Overall, sentiments stood downbeat after Industrial production data contracted once again for the month of August. IIP dipped 0.7 per cent in August due to a slump in manufacturing and mining, in the manufacturing space, capital goods brought about the maximum fall.
According to market experts, demand for dollar from banks and importers dented rupee movement on Thursday. US Dollar also gained against other currencies after minutes of the Federal Reserve’s last meeting pointed at an interest rate hike this year which further put some pressure on the local currency.
Meanwhile, domestic equity markets plunged over 1.50 per cent on Thursday. The BSE Sensex closed 439.23 points, or 1.56 per cent, down at 27,643.
American stock markets closed mostly higher on Wednesday, after minutes from the Federal Reserve’s September policy meeting showed support for a rate rise relatively soon but implied a go-slow approach. The Dow Jones Industrial Average added 15.54 points to 18,144.20.