Rupee closes at more than two-year low at 66.76

Rupee closes at more than two-year low at 66.76

The rupee ended at more than two-year low at 66.76 against the American currency on month-end dollar demand from importers and some banks.

Persistent foreign capital outflows also affected the market sentiment. They sold shares net $40.25 million on Thursday.

The domestic currency opened lower by 66.66 per dollar as against Thursday’s closing level of 66.57 at the Interbank Foreign Exchange (Forex) market and dropped further to 66.8950 per dollar before ending at more than 2-year low at 66.76 per dollar, showing a loss of 19 paise or 0.29 per cent.

The rupee had last ended at 67.07 per dollar on Sept 4, 2013.

The rupee has dropped by 44 paise or 0.66 per cent in two days.

The rupee moved in a range of 66.65 per dollar and 66.8950 per dollar during the day.

The dollar index was up by 0.13 per cent as against the basket of six major currencies in the late afternoon trade.

The dollar was nearly unchanged against the yen and the euro in Asian trade Friday.

With US markets closed for the Thanksgiving Day holiday, investors held fire amid thin trade and limited catalysts.

With the exception of the Turkish lira, flight to the safety of the dollar has largely subsided following the Turkish military s downing of a Russian fighter. Attention is now on the European Central Bank’s policy meeting on December 3, and the magnitude of potential easing steps, traders said.

Investors have largely factored in a possible US.

Federal Reserve decision to raise short-term rates in December, but are skeptical about further monetary tightening in the months ahead, traders said.

Meanwhile, the Sensex rose further by 169.57 points or 0.65 per cent on Friday.

In forward market, premium for dollar eased further on persistent receivings from exporters.

The benchmark six-month premium payable in April ended steady at 177-179 paise while far forward October 2016 contract eased further to 385-387 from 387-389 paise.

The RBI fixed the reference rate for the dollar at 66.7503 and for the Euro at 70.8755.

The rupee moved down further against the pound sterling to end at 100.63 from 100.41 on Thursday also moved down against the euro to settle at 70.71 as against 70.64.

The domestic currency dropped further against the Japanese currency to close at 54.45 per 100 yen from 54.30.
[“source-businesstoday”]