Rupee extends losses for 2nd day; down 8 paise against dollar

Weak stock markets and a strong dollar overseas also affected the rupee sentiment.

Extending its losses for the second day, the rupee on Friday dropped by another 8 paise to close at 66.48 per dollar on persistent demand from banks and importers for the US currency.

Weak stock markets and a strong dollar overseas also affected the rupee sentiment, dealers said.

The rupee resumed lower at 66.50 per dollar against last close of 66.40 at the Interbank Foreign Exchange (Forex) market. It hovered in a range of 66.4675 and 66.6075 per dollar before ending at 66.48 per dollar, showing a loss of 8 paise or 0.12 per cent.

The rupee lost 26 paise or 0.39 per cent in two days to Friday.

The dollar index was up by 0.12 per cent against a basket of six currencies in the late afternoon trade.

Meanwhile, the RBI fixed the reference rate for the dollar at 66.4925 and euro at 75.1033.

In cross-currency trades, the rupee dropped further against the pound sterling to close at 95.65 from 95.42 on Thursday.

However, it firmed up further against the euro to 74.91 per euro from 75.16 per euro previously.

The domestic currency also moved up further against the yen to 60.08 per 100 yens from 60.48.

In the afternoon, the yen slid across the board in the in global market after speculation of negative loan rates from Bank of Japan ahead of its monetary policy meeting next week.

In forward market, premium for dollar fell sharply on fresh receivings from exporters.

The benchmark six-month premium for September fell to 192-194 paise from 198-200 paise previously and far forward March 2017 contract also tumbled to 385-387 paise from 395-397 paise.

Oil prices climbed in Asia today, heading for their third weekly gain after OPEC said it was open to fresh calls on freezing output despite the failure to reach a deal at the weekend.

US benchmark West Texas Intermediate (WTI) for delivery in June was up 54 cents, or 1.25 per cent, at USD 43.72 and Brent crude for June climbed 49 cents, or 1.10 per cent, to $45.02 a barrel.

Meanwhile, the benchmark Sensex declined by 42.24 points or 0.16 per cent to close at 25,838.14.