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Indian rupee breaches 65-mark against dollar, recovers to close at 64.55

Indian rupee breaches 65-mark against dollar, recovers to close at 64.55

In six straight sessions, the rupee has now tanked 3.36 paise, or 5.49 per cent. Meanwhile, the BSE Sensex bounced back by 407 points, or 2.27 per cent, to close at 18,312.94.

PHOTO: Reuters PHOTO: Reuters
The Indian rupee remained in the doldrums for the sixth session in a row and breached the 65-mark to an all-time intra-day low of 65.56 before recovering to settle at 64.55 against the Greenback, still down by 44 paise, despite strong recovery in local equities.

Continued dollar selling by exporters, sustained capital outflows and firm dollar overseas after the Fed minutes showed the US central bank remained on course to begin trimming its stimulus before years end. The dollar index, consisting of six major global currencies, was up by 0.32 per cent.

At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed sharply weak at 64.85 a dollar from last close of 64.11 and crossed 65-mark to historic low of 65.56.

However, hopes of interference by the Reserve Bank of India (RBI) at lower levels pulled it up to conclude at 64.55, still exhibiting a fall of 44 paise or 0.69 per cent.

In six straight sessions, the rupee has now tanked 3.36 paise, or 5.49 per cent.

Pramit Brahmbhaat, CEO, Alpari Financial Services, (India) said: "Daily, Rupee is breaching its previous low convincingly... Today for the sixth consecutive day rupee has made new all time low. The US dollar is trading strong against major rivals since yesterday as minutes from the Federal Reserves meeting showed, almost all officials support, a slowing of bond buys later this year, depending on the data. The trading range for the same is expected to be within 64.10 to 65.10."

Meanwhile, the BSE Sensex on Thursday bounced back by 407 points, or 2.27 per cent, to close at 18,312.94. According to data available at the stock exchanges, FIIs sold shares worth Rs 792.11 crore on Wednesday.

With inputs from PTI