Extending its fall for the third session, the rupee on Monday dropped nine paise to 67.68 per dollar on sustained demand for the US currency from banks and importers amidst sharp fall in equities.
Sustained foreign capital outflows also affected the market sentiment. They pumped out US $153.46 millions from the equity market on last Friday as per the SEBI’s record.
The domestic unit resumed lower at 67.61 per dollar as against last Friday’s closing level of 67.59 at the Interbank Foreign Exchange (Forex) market and dropped further to 67.73 before concluding at 67.68, showing a loss of nine paise or 0.13%.
The rupee has dropped by 83 paise or 1.24% in three days.
The domestic currency hovered in a range of 67.49 and 67.73 per dollar during the day.
The dollar index was higher by 0.14% against a basket of six currencies in the late afternoon trade.
Overseas, the US dollar mostly traded higher against its main rivals in the early Asian trade, while safe-haven yen got off to a flying start, as oil prices slid below US $30 per barrel and fears grew about the health of the Chinese economy.
A batch of disappointing US data, including a fall in retail sales added to worries about the global economy.
The dollar strengthened against the yen during the afternoon trade in Asian trade as investors sold the Japanese currency, walking away from its perceived safety after losses in Tokyo stocks narrowed.