Rupee tumbles by 44 paise to more than 2-year low at 67.29

Fresh dollar demand from banks and importers amidst volatile equities triggered the fall

The Indian rupee tumbled by 44 paise to more than 2-year low at 67.29 against the American currency on fresh dollar demand from banks and importers amidst volatile equities.

The Indian unit resumed sharply lower at 66.98 per dollar against Wednesday's closing level of 66.85 at the Interbank Foreign Exchange (Forex) market and dropped further to 2-year low to 67.30 before concluding at 67.29, showing a loss of 44 paise or 0.66 per cent.

The rupee had last settled at 67.63 per dollar on September 3, 2013 and intra-day trade at 68.62 on September 4, 2013.

It moved in a wide range of 67.30 and 66.98 during the day.

The dollar index was down 0.17 per cent against a basket of six currencies in the late afternoon trade.

In Asian market, the yen was slightly higher against the dollar and other currencies, as investors bought the perceived safety of the Japanese currency following renewed volatility in stocks.

The US dollar edged lower against the euro and yen on Wednesday, as a rally in oil prices faded and the Federal Reserve’s Beige Book painted mixed picture of the US economy.

Brent oil stayed below $30 a barrel as prices remained weak in Asia trade after the US crude and fuel inventories rose, adding further anxiety over a global supply glut.

The benchmark BSE Sensex dropped by 81.14 points or 0.33 per cent to close at 24,772.97.

In forward market, premium for dollar dropped further on persistent receivings by exporters.

The benchmark six-month premium payable in June moved down further to 189-191 paise from 193-195 paise previously and forward December 2016 contract also fell to 398-400 paise from 403-405 paise on Wednesday.

The RBI fixed the reference rate for the dollar at 67.0950 and for the euro at 72.9725.

In cross-currency trades, the rupee fell against the pound sterling to finish at 96.81 from overnight close of 96.44 and also dropped against the euro to conclude at 73.57 from 72.37.

The domestic currency fell against the Japanese yen to settle at 57.24 from 56.56 per 100 yen.