Rupee at fresh 28-month low vs dollar, down 30 paise at 67.59

The rupee recovered by four paise to 67.25 against the US dollar in early trade on fresh selling of the American currency by exporters and banks.

Extending losses for the second straight day against the American currency, the rupee dipped by 30 paise to fresh 28-month low at 67.59 on fresh dollar demand from importers in view of persistent foreign capital outflows amidst sharp fall in equities.

Persistent fall in crude oil prices also affected the market sentiment. Oil prices eased in Asia on Friday, with the under-pressure commodity sitting around 12-year lows as dealers prepare for the return of Iranian exports to the market while the US stockpiles increase.

The rupee resumed lower at 67.35 per dollar as against Thursday’s closing level of 67.29 at the Interbank Foreign Exchange (Forex) market and dropped further to a low of 67.71 before closing at fresh 28-month low at 67.59, showing a loss of 30 paise or 0.45%.

It had last settled at 67.63 on September 3, 2013 and during the intra-day trade at 68.62 on September 4, the same year.

The local currency has lost 74 paise or 1.11% in two days.

It hovered in a range of 67.71 and 67.24 during the day.

However, the dollar index was down 0.12% against a basket of six currencies in late afternoon trade.

The dollar fell around 0.8% against the yen on Friday in the late Asian market as a resumed global market sell-off sent investors running for cover in the perceived safety of the Japanese currency.

Weakness for the greenback came amid heavy fresh losses for crude oil, which dropped below $30 a barrel in morning European trading hours.