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
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.