Rupee free fall continues, down 7 paise against dollar

  • PTI, Mumbai
  • Updated: May 17, 2016 19:13 IST
A money lender counts rupee notes at his shop in Ahmedabad (Reuters file photo)

Extending losses for the fourth straight session, the rupee dropped further by 7 paise to 66.87 on Tuesday on fag-end dollar demand from banks and importers on the back of higher crude prices amid firm domestic equities.

The rupee resumed higher at 66.74 per dollar as against Monday’s closing level of 66.80 at the Interbank Foreign Exchange market and firmed up to 66.67 on initial dollar selling by banks and exporters on the back of persistent rise in equity market.

However, it washed out initial gains following fresh dollar demand from banks and importers on the back of firm crude oil prices and dropped to 66.8850 before ending at 66.87, showing a loss of 7 paise or 0.10%.

It has lost 31 paise or 0.47% in four days. The domestic currency hovered in a range of 66.67 and 66.8850 per dollar during the day. The dollar was flat against the yen in range-bound Asian trade, with investors in wait-and-see mode before coming economic data and events this week.

Meanwhile, the Australian dollar advanced after the Australian central bank’s latest meeting minutes damped hopes for an early rate reduction.

Meanwhile, the RBI fixed the reference rate for the dollar at 66.7233 and euro at 75.4907.

In cross-currency trades, the rupee dropped against the pound sterling to finish at 96.81 from 95.99 on Monday. It also moved down against the euro to 75.70 from 75.62.

However, the domestic currency firmed up against the yen to 61.07 per 100 yens from 61.32 previously.

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