Rupee drops 15 paise against US dollar in early trade
The rupee was trading lower by 15 paise at 67.98 against the American currency in early trade on Wednesday.business Updated: Jan 27, 2016 19:41 IST
Extending losses for the second day, the rupee on Wednesdy plummeted by another 22 paise to close at a new 29-month low of 68.05 per dollar on sustained demand for the American currency from banks and importers amidst lower greenback overseas.
The month-end dollar demand from importers, mainly oil refiners, affected the rupee value against the dollar, a forex dealer said.
Oil prices continued their slide in Asia as long- running concerns over the saturated market overshadowed talk of possible coordination between some major producers to slash output.
US benchmark West Texas Intermediate for March delivery was down 59 cents, or 1.88%, at 30.86 dollar and Brent crude for March fell 43 cents, or 1.35%, to 31.37 dollar a barrel.
The rupee resumed lower at 67.90 per dollar as against Monday’s closing level of 67.83 at the Interbank Foreign Exchange (Forex) market and fell further to 68.08 before closing at 29-month low at 68.05, showing a loss of 22 paise or 0.32%.
The rupee has lost 42 paise or 0.62% in the last two trading days.
The domestic currency had logged its all-time closing low of 68.80 per dollar on August 28, 2013.
The domestic unit hovered in a range of 67.90-68.08 per dollar during the day.
The dollar index was steady against a basket of six currencies in the late afternoon trade.
The dollar was slightly lower against the yen in Asia trade, as investors sat on the sidelines ahead of potentially market-moving news from monetary policy meetings in the US and Japan later this week.
The benchmark Sensex inched up by 6.44 points or 0.03% to close at 24,492.39.