Extending losses for the second straight day, the rupee declined by 11 paise to close at more than a 3-week low of 66.93 against the US dollar on persistent demand for the American currency from banks and importers amid sharp fall in equities.
Besides, sustained foreign capital outflows affected the rupee sentiment.
The domestic currency resumed lower at 66.85 as against Wednesday’s closing level of 66.82 at the Interbank Foreign Exchange (Forex) market and dropped further to 66.97 before ending at a more than 3-week low of 66.93, showing a loss of 11 paise or 0.16%.
The rupee had last ended at 67.09 on December 14, 2015.
The local currency, which moved in a range of 66.67 and 66.97 during the day, has lost 33 paise, or 0.50% in two days.
The dollar index was down by 0.48% against the basket of six currencies in late afternoon trade.
Veracity Group CEO Pramit Brahmbhatt said, “Since opening trade, we saw buying in USD. Trading range for the spot USD/INR paid is expected to be within 66.80 to 67.20 range.”
In a surprise move, China’s central bank lowered the yuan’s value against the US dollar, sending the domestic stock markets tumbling.
Meanwhile, the benchmark BSE Sensex ended lower by 554.5 points, or 2.18%, to settle at 24,851.83.