Indian rupee tumbled by another 23 paise to close at 68.46 per dollar
The Indian rupee continued to fall against the American currency for the second consecutive week, tumbling by another 23 paise to close at 68.46 per dollar on persistent dollar demand from banks and importers in view of sustained foreign capital outflows. Recovery in the domestic equity market failed to restrict the rupee’s fall against the dollar, a forex dealer said.
The domestic unit resumed slightly higher at 68.20 as against the last weekend’s level of 68.23 per dollar at the Interbank Foreign Exchange (Forex) market and firmed up further to 68.01 per dollar on initial selling of dollars by banks and exporters due to weakness of dollar in the overseas market.
However, it washed out initial gains and dropped to fresh 29-month low at 68.67 per dollar on fag-end dollar demand from banks and importers before ending at 68.46 per dollar, showing a loss of 23 paise or 0.34 per cent.It has dropped by 82 paise or 1.21 per cent in two weeks.
The domestic currency hovered in a range of 68.01 and 68.67 per dollar during the week.The rupee had hit its all-time closing low of 68.80 per dollar on August 28, 2013 after plunging to 68.85 mark on the same day in the intra-day trade.
In worldwide trade, the US dollar softened against its major peers after the latest dovish Federal Reserve minutes indicated that the US central bank is concerned about global economic turmoil.
The flagship stock market index Sensex surged by over 723.03 points or 3.15 per cent to end the week at 23,709.15.