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Rupee Slips Further By 11 Paise To 64.04 Vs US Dollar

The rupee has dropped by 26 paise or 0.41 per cent in two days

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The rupee on Tuesday fell by another 11 paise to 64.04 a dollar, the second straight session loss on persistent demand for the American currency from banks and importers.

Foreign capital outflows also had an impact on the rupee trading against the dollar, a forex dealer said.

Firm equity market failed to restrict the rupee's loss against the dollar, he added.

The rupee resumed lower at 63.98 a dollar as against Monday's closing of 63.93 at the forex market and dropped further to 64.05 before finishing at 64.04, a loss of 11 paise or 0.17 per cent.

The rupee has dropped by 26 paise or 0.41 per cent in two days.

The domestic currency hovered in a range of 63.9350 and 64.05 per dollar during the day.

Overseas, the dollar held to large gains following a sharp rebound against the yen and euro, lifted by improving investor risk sentiment as worries over North Korea and Hurricane Irma receded.

The dollar index against a basket of six major currencies was trading higher by 0.11 per cent in the late afternoon trade.

In cross-currency trades, the rupee remained under pressure against the pound sterling and settled at 84.94 from 84.48 per pound, but firmed up further against the euro to finish at 76.40 from 76.69.

The local unit also ended higher against the Japanese yen settle at 58.28 per 100 yens from 58.86 earlier.

In forward market on Tuesday, premium for dollar inched up further on good buying enquiries from importers.

The benchmark six-month premium payable in February edged marginally higher at 126-128 paise from 126-127 paise and the far forward August 2018 contract also inched up to 266-268 paise from 266.50-267.50 paise on Monday.

Meanwhile, the Indian benchmark Sensex rose further by 276.50 points, or 0.87 per cent to close at 32,158.66.

In global market, oil prices finished higher yesterday as investors assessed the impact of Hurricane Irma on energy demand in Florida and Hurricane Harvey's extent of damage to oil refineries on the Gulf Coast.

October West Texas Intermediate crude tacked on 59 cents, or 1.2 per cent, to settle at USD 48.07 a barrel on the New York Mercantile Exchange after tapping a low at USD 47.

(PTI)


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