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Rupee sheds 4 paise at 66.14 against US dollar

The rupee depreciated by 18 paise to 66.28 against US dollar at the Interbank Foreign Exchange in early trade on Wednesday due to fresh dollar demand from importers.

business Updated: Aug 26, 2015 18:33 IST
Rupee,Rupee vs Dollar,Interbank Foreign Exchange

After a brief recovery, the rupee once again turned weak against the US dollar on Wednesday, falling by four paise to end at 66.14 on renewed demand for the American unit from importers amid global volatility.

Sharp sell-off in domestic equity markets and robust dollar against major world currencies predominantly impacted the rupee sentiment, a forex dealer said.

Heavy capital outflows against the backdrop of volatile global situation amid Fed rate hike fears also added some pressure.

The domestic currency resumed lower at 66.22 per dollar as against Tuesday's closing level of 66.10 at the Interbank Foreign Exchange and dropped further to a low of 66.37 following robust dollar demand.

However, the domestic unit witnessed a smart rebound to hit an intra-day high of 66.07 on the back of dollar selling by banks and export houses, before slipping back to end at 66.14, revealing a loss of 4 paise, or 0.06%.

The dollar firmed up against the other major currencies due to strong US macro data which raised market expectations for an interest-rate hike from the Federal Reserve.

The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was substantially higher by 0.83% at 94.70.

Meanwhile, the benchmark Sensex retreated to close sharply lower by 317.72 points at 25,714.66.

First Published: Aug 26, 2015 09:41 IST