Sharp fall in equity market amid foreign fund outflows affected rupee
The rupee tumbled by 33 paise on Monday to end at a four-week low of 64.08 against the American currency on fresh dollar demand from banks and importers on the back of firm greenback in the overseas market.
Sharp fall in equity market amid foreign fund outflows also affected rupee value against the dollar, a forex dealer said.
In the overseas market, dollar soared against most of its rivals on last Friday, hitting a 13-year high against the Japanese yen, after a strong jobs report indicated the US economy bounced back strongly in May, sparking a surge in treasury yields.
The rupee resumed lower at 64.05 per dollar as against the last weekend's level of 63.75 per dollar at the Interbank Foreign Exchange Market and dropped further to 64.1675 before ending at a four-week low at 64.08 per dollar, showing a loss of 33 paise or 0.52 per cent.
The domestic currency had last ended at 64.17 per dollar on May 12, 2015. It moved in a range of 64.00 and 64.1675 during the day.
The dollar index was trading lower by 0.22 per cent against its major global rivals on Monday.
Pramit Brahmbhatt, Veracity Group CEO said: "Today rupee traded low and depreciated over 30 paise for the day to close at 64.08.
Weak local equities and strong dollar dented rupee movement and forced it to shed over half a per cent for the day."
The trading range for the Spot USD/INR pair is expected to be within 63.75 to 64.40.
