Mumbai, India (BBN) – The rupee was trading weak at 64.40 against the dollar ahead of key macroeconomic data set for release later in the day amid foreign capital outflows.
Increased demand for the American currency from importers poured cold water on the rupee, but the dollar’s reduced clout against other currencies overseas limited the losses, reports The Hindu Business Line.
The domestic unit opened weak by 5 paise at 64.42 at the Interbank Foreign Exchange market today. It hovered in a range of 64.52 and 64.39 before quoting at 64.40, down 3 paise at 4.45 pm local time.
Yesterday, the rupee had gained 8 paise to end at a fresh one-week high of 64.37 on persistent selling of the US currency ahead of release of industrial production and retail inflation data.
Meanwhile, the benchmark BSE Sensex plunged over 220 points and the NSE index Nifty ended below 10,250 on investors’ concern that higher global crude oil prices would stoke inflation and impact future interest rate decisions by the country’s central bank.
The dollar was flat on Tuesday after strong recent gains as the US Federal Reserve geared up for a two-day policy meeting at which it is widely expected to raise interest rates for the fifth time since late 2015.
The dollar index held steady at 93.80 after rising more than 1 per cent last week, its biggest weekly rise since the end of October. But it is still down more than 9 per cent so far this year.