Rupee breaches 64-mark after 20 months, ends at 64.23

Continuing its weakness for the fifth session, the rupee dipped below the 64-mark to end at 20 months' low of 64.23 against the American currency on sustained capital outflows by foreign funds.

Sustained dollar demand from importers and banks kept pressure on the Indian unit, forex dealers said.

Recent surge in crude oil prices globally too weighed on the rupee, however, dollar's weakness overseas, capped losses in the local unit, they said.

Persistent foreign funds outflows, weighed down by lingering concerns over MAT and delay in passage of key tax reform bills in Parliament dragged down the rupee to 20-month lows.

The rupee opened lower at 63.78 as against last closing level of 63.54 at the Interbank Foreign Exchange (Forex) market, later it slid further to breach 64-level to trade at 64.28 at mid-session before concluding at 64.23 per dollar, showing a loss of 69 paise or 1.09 per cent.

This is the weakest close of Indian currency since September 6, 2013, when it was closed at 65.24.

The domestic currency has dropped by 108 paise or 1.71 pct in the five sessions. It moved in a range of 63.69 and 64.28 per dollar during the day.

However, Crude oil prices fell by 56 cents to USD 67.21 in early Asian trade after hitting 2015-high in the previous session.

The Indian benchmark Sensex dropped further by 118.26 or 0.44 per cent today.

In the New York market, the dollar finished sharply lower against the euro yesterday after payrolls processor ADP released an April employment number that was much weaker than the market had expected, stirring concerns that the US remains in a state of economic uneasiness.

The dollar index was up by 0.02 per cent today against its six major global rivals.