Rupee ends at more than 29-month low, down 45 points

The rupee ended lower by 45 paise to more than 29-month low against the American currency to 68.30 per dollar on fresh dollar demand from banks and importers in view of sharp fall in equities amidst foreign capital outflows.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 751.33 crore on Wednesday, as per provisional data released by the stock exchanges.

The Indian unit resumed lower at 67.95 per dollar as against Wednesday's closing level of 67.85 at the Interbank Foreign Exchange (Forex) market and fell further to 68.3450 per dollar before finishing at more than 29-month low at 68.30 per dollar, showing a loss of 45 paise or 0.66 per cent.

The rupee had last ended at 68.80 per dollar on August 28, 2013 after touching 68.85 on the same day during the intra-day trade.

The domestic unit moved in a range of 67.90 and 68.3450 per dollar during the day.

The dollar index was down by 0.30 per cent against a basket of six currencies in the late Asian trade.

Overseas, dollar hit a 15-month low against the yen on Thursday after comments from Federal Reserve Chair Janet Yellen gave investors no reason to change their minds that the next rate hike will be a long time coming.

Meanwhile, the Indian benchmark Sensex ended lower by 807.07 points or 3.40 per cent on Thursday.

Pramit Brahmbhatt of Veracity Financial Services said, "As expected rupee opened on a negative note and since opening trades we saw rupee depreciating. We saw loss in rupee extending as rupee breached lower level of 68. The fall in rupee was mainly on back of global as well as domestic equity market sell-off."

Benchmark index NIFTY lost nearly 240 points for the day. Trading range for spot dollar/rupee pair is expected to be within 67.8 to 68.7 levels.