Rupee extends losses to 66.71, down 18 paise

The rupee has dropped by 21 paise or 0.32 per cent in the last two sessions.

The rupee on Tuesday fell by another 18 paise to close at 66.71 per dollar on persistent demand for the American currency from banks and importers on the back of higher greenback overseas despite sustained foreign capital inflows in domestic equities.

The rupee resumed lower at 66.58 per dollar as against the Monday’s closing level of 66.53 at the Interbank Foreign Exchange market and dropped further to 66.84 on sustained dollar demand from from banks and importers before ending at 66.71, showing a loss of 18 paise or 0.27 per cent.

The rupee has dropped by 21 paise or 0.32 per cent in the last two sessions.

It hovered in a range of 66.52 and 66.84 per dollar during the day.

The dollar index was up by 0.22 per cent against a basket of six currencies in the late afternoon trade.

The dollar climbed yesterday, paring its weekly decline last week. The US dollar steadily strengthened against its main rivals during Monday's session after two regional Fed presidents said they would support the Federal Reserve raising interest rates at its April meeting.

The pound dropped nearly 1 per cent against the US dollar today, following reports of multiple explosions in Brussels. Sterling was down 0.8 per cent to $1.4268.

A series of explosions ripped through Brussels airport and a city metro station today, killing at least 26 people.

Pramit Brahmbhatt of Veracity Financial Services said, "The rupee opened on a flat note following cues from global equity as well as crude prices. However, it dropped afterwards to end at 66.71."

Trading range for spot USD/INR will be 66.50 to 67/USD.

Meanwhile, foreign funds continued their buying spree yesterday as they bought shares worth Rs 1,396.33 crore as per the stock exchanges.

However, the benchmark Sensex moved up 45.12 points from 0.18 per cent to close at 25,330.49.

In forward market, premium for dollar moved down further due to persistent receivings from exporters.

The benchmark six-month premium for August dropped to 202-204 paise from 206.5-208.5 paise yesterday and far forward February 2017 contract also declined further to 409-411 paise 412-414.5 paise.

The RBI fixed the reference rate for the dollar at 66.5411 and euro at 74.8987.

In cross-currency trades, the rupee firmed up further against the pound sterling to finish at 95.28 from 95.76 yesterday and also moved up to 74.76 per euro from 75.01.

The rupee closed slightly lower against the yen to 59.69 per 100 yens from 59.67.