Indian rupee plunges 27 paise to end at 66.30 vs US dollar

By: | Updated: November 18, 2015 9:10 PM

The rupee extended losses against the American currency for the second straight day, slipping by another 27 paise to close at 66.30 on sustained dollar demand from banks and importers in view of persistent foreign capital outflows.

indian rupeeThe Indian rupee depreciated by 14 paise to 66.17 against the dollar at the Interbank Foreign Exchange in early trade today on buying of the US currency by importers. (Reuters)

The rupee extended losses against the American currency for the second straight day, slipping by another 27 paise to close at 66.30 on sustained dollar demand from banks and importers in view of persistent foreign capital outflows.

Firm dollar in the overseas market also affected the rupee value against the dollar, a forex dealer said.

The rupee opened lower at 66.12 per dollar as against yesterday’s level of 66.03 at the Interbank Foreign Exchange market and dropped further to 66.33 on good dollar demand from banks before ending at 66.30, showing a loss of 27 paise or 0.41 per cent.

It has lost 30 paise or 0.45 per cent in last two days.

It hovered in the range of 66.09 to 66.33 per dollar during the day.

The dollar index was trading lower by 0.23 per cent as against a basket of six currencies in the late afternoon trade.

“Investors are expected to trade cautiously ahead of the data due this week. The rupee is expected to trade weak taking cues from a strong dollar,” a forex dealer said.

In the global market, the US dollar largely held onto strength against major currencies today, but investors refrained from making major moves.

“Investors are in a wait-and-see mood amid a lack of fresh trading cues and still-lingering fears about terrorist attacks,” a forex dealer said.

Meanwhile, the benchmark Sensex tumbled by 381.95 points or 1.48 per cent to more than 2-month low at 25,482.52 today.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 492.45 crore yesterday, as per provisional data released by the stock exchanges.

Pramit Brahmbhatt, Veracity Group CEO, said, “Today also the rupee depreciated over 25 paise for the day to close at 66.30 taking cues from weakness in local equities as investors continued to stay away from the uncertain market.”

Better than expected US consumer price inflation data ignited the anticipation of rate hike which has supported the dollar to trade firm. Also the sustained dollar demand from oil importers further forced the rupee to trade weak.

The trading range for the Spot USD/INR pair is expected to be within 66.00 to 66.60.

In forward market today, premium for dollar eased further on sustained receipts from exporters.

The benchmark six-month premium payable in April moved down further to 191.5-192.5 paise from 192.5-194.5 paise yesterday and far forward October 2016 contract also eased to 399.5-401.5 from 400-402 paise.

The RBI fixed the reference rate for the dollar at 66.1138 and for the Euro at 70.3914.

The rupee moved down further against the pound sterling to end at 100.90 compared to 100.43 yesterday and fell against the euro to settle at 70.68 against 70.47.

The domestic currency also moved down against the Japanese currency to close at 53.72 per 100 yen from 53.60.

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