Rupee falls for 8th straight session, down 5 paise against dollar | business | Hindustan Times
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Rupee falls for 8th straight session, down 5 paise against dollar

business Updated: May 23, 2016 19:04 IST

A money lender counts currency notes at his shop in Ahmedabad. The rupee recovered 19 paise to 67.25 against dollar in early trade on Monday on increased selling of the US currency by exporters and banks.(Reuters Photo)

Extending its fall for the eighth straight session, the rupee depreciated on Monday by another 5 paise to end at 67.49 per dollar on sustained demand for the US currency from banks and importers.

Outflows of foreign funds on the back of stricter participatory notes (P-Notes) and renewed possibility of the Federal Reserve lifting US interest rates as early as June along with sluggish domestic equities largely impacted the domestic unit.

Importers rushing to hedge their offshore liabilities in the wake of sharp swings in the currency market after rupee breached the psychological 67-mark further added to pressure.

The domestic unit resumed higher at 67.30 per dollar compared to weekend’s closing value of 67.44 at the Interbank Foreign Exchange market and added strength to touch a fresh intra-day high of 67.25 following fresh dollar selling by exporters and banks amid a firm opening of domestic equities.

But, it turned highly volatile in mid-afternoon trade due to renewed dollar demand from state-run banks and importers to hit a low of 67.50, before concluding at 67.49, revealing a loss of 5 paise, or 0.07%.

The rupee had last ended at 67.54 per dollar on March 2, 2016.

Meanwhile, the RBI fixed the reference rate for the dollar at 67.3492 and euro at 75.6197.

In cross-currency trades, the rupee firmed up further against the pound sterling to end at 97.71 from 98.19 last Friday.

However, the local unit remained weak against the euro to settle at 75.66 against 75.65 and fell back against the yen to finish at 61.69 per 100 yens compared to 61.09 previously.