Rupee cracks below 66 mark, falls 25 paise against US dollar

The rupee fell to a 13 month low against the US dollar, trading 25 points lower at 66.05.

The rupee weakened by 25 paise to breach the 66-level and hit its 13-month low of 66.05 against the US dollar in the early trade on Friday, owing to an appreciation of the US currency overseas.

The minutes of the last meeting of the Monetary Policy Committee (MPC) indicated the Reserve Bank of India may shift to a hawkish monetary stance in June. (Hemant Mishra/Mint)

Increased demand for the dollar from importers also put pressure on the domestic unit.

Meanwhile, the minutes of the last meeting of the Monetary Policy Committee (MPC) indicated the Reserve Bank of India may shift to a hawkish monetary stance in June.

Dealers attributed the rupee’s fall to dollar gains against other currencies overseas, persistent foreign fund outflows and a lower opening of the domestic equity market.

On Thursday, the rupee had lost 14 paise to close at a fresh 13-month low of Rs 65.80 as growing worries over higher crude prices and likely fiscal slippages led to subdued forex market sentiment.

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