Business

Rupee tumbles by 36 paise against U.S. dollar

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Closes at a 2-year low of 66.82 against the American currency on Monday on persistent dollar demand from banks and importers.

The rupee plunged by 36 paise to close at a 2-year low of 66.82 against the American currency on Monday on persistent dollar demand from banks and importers due to sustained foreign capital outflows amidst sharp fall in equity markets.

The domestic currency opened lower at 66.60 as against last weekend’s level of 66.46 at the Interbank Foreign Exchange (Forex) market. It dipped further to 66.86 before concluding at a 2-year low at 66.82, showing a loss of 36 paise, or 0.54 per cent. It had last ended at 67.07 on September 4, 2013. The rupee has dropped 63 paise, or 0.95 per cent, in three trading days.

Volatile equities

Forex dealers said volatile domestic equities coupled with higher dollar overseas impacted the rupee sentiment.

The dollar index was down by 0.02 per cent against a basket of six major currencies.

“The USD-INR currency pair will continue to get influenced by global forex and domestic equity moves,” a dealer said, adding that exporters were expected to hedge their U.S. dollar receivables on upticks towards 66.86.

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Printable version | Jan 18, 2020 9:04:18 AM | https://www.thehindu.com/business/rupee-tumbles-by-36-paise-against-us-dollar/article7625746.ece

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