Millennium Post

Rs slides by 69 paise to breach 64-per-$ mark after 20 months

Continuing its weakness for the fifth session, the rupee dipped below the 64-mark to end at 20 months’ low of 64.23 against the American currency on sustained capital outflows by foreign funds.
Sustained dollar demand from importers and banks kept pressure on the Indian unit, forex dealers said. Recent surge in crude oil prices globally too weighed on the rupee, however, dollar’s weakness overseas, capped losses in the local unit, they said. Persistent foreign funds outflows, weighed down by lingering concerns over MAT and delay in passage of key tax reform bills in Parliament dragged down the rupee to 20-month lows. 

The rupee opened lower at 63.78 as against last closing level of 63.54 at the Interbank Foreign Exchange (Forex) market, later it slid further to breach 64-level to trade at 64.28 at mid-session before concluding at 64.23 per dollar, showing a loss of 69 paise or 1.09 per cent. This is the weakest close of Indian currency since September 6, 2013.

Sensex dips 118 pts to 6-1/2 month low
Falling for the third-straight day, the benchmark BSE Sensex Thursday tumbled 118 points to end at 6-1/2 months low of 26,599.11 on persistent selling by foreign investors over taxation worries and delay in passage of key reform bills.

Investor sentiment was also dampened after weakening of rupee to a 20-month low (intra-day) faded chances of a rate cut by the RBI at its meeting next month, brokers said. Global cues, unsettled by sell-off in government bonds, stocks and dollar, also weighed on sentiments, they added. All the major indices in Asia ended lower, while those in Europe were in the red in their early trade. The 30-share Sensex Thursday fell 118.26 points or 0.44 per cent to close at 26,599.11, its weakest closing since October 21, last year. The gauge shuttled between 26,423.99 and 26,850.37 

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