Comments
Falling for the second straight session, the rupee on Friday depreciated by 8 paise to end at 66.89 against the dollar due to increased demand for the American currency from importers and State-owned banks. A rise in the dollar on Friday to touch a seven-month high against a basket of currencies driven by buoyant expectations of a US interest rate hike this year mainly weighed on the forex trade.
Lacklustre domestic equities alongside ongoing FCNR redemptions further added pressure on the local currency, a forex dealer said. However, the trading largely remained range-bound in the absence of any marketmoving factors, ahead of the weekend.
According to forex dealers, a weak domestic equity market also put the rupee on the back foot.
The domestic unit opened weak by 9 paise at 66.90 against the previous close of 66.81 at the Interbank Foreign Exchange market today.
It hovered in a range of 66.94 and 66.84 before quoting at 66.87, down 6 paise at 4.30 pm local time.
In the overseas market, the dollar stood tall in Asian trading, on track for a weekly gain against a basket of currencies, as the euro wallowed close to four-month lows after the European Central Bank quashed any speculation of tapering its stimulus.
Meanwhile, the benchmark BSE Sensex ended lower by 52.66 points or 0.19 per cent at 28,077.19.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.