Rupee at 2-year low |
The rupee fell back sharply after a strong overnight rally and ended with a 17 paise loss at 66.88 against the US dollar, the lowest level in more than two years in the face of strong demand for greenback.Fresh dollar demand from importers driven by heavy capital outflows and a steep fall in local equities largely weighed on the rupee value.Some caution ahead of the key economic data — industrial production numbers for October — which is due later in the day also impacted the trade.Market sentiments remained jittery with an imminent higher interest rate environment arising out of the US Federal Reserve`s action next week.Weak dollar overseas, however, limited the fall.The home currency opened lower at 66.80 per dollar compared to December 10 close of 66.71 at the Interbank Foreign Exchange market on fresh dollar demand from banks and importers.Later, it recovered some lost ground and moved erratically in a range of 66.74 and 66.90 in afternoon trade before concluding at 66.88, revealing a fall of 17 paise, or 0.25 per cent.The Indian rupee had appreciated by 12 paise to end at 66.71. Market participants are highly cautious at this juncture ahead of the much awaited Fed rate hike decision next week and the potential impact on the country`s currency as India will not be immune if global volatility increases.
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