Rupee falls for 2nd day, down 15 paise to 66.77

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

Extending its losses for the second straight session, the rupee today fell by another 15 paise to 66.77 a dollar on sustained demand for the US currency from banks and importers on the back of higher greenback overseas amidst sharp fall in domestic equities.

The rupee resumed lower at 66.78 per dollar as against the Thursday’s closing level of 66.62 at the Interbank Foreign Exchange market and moved down further to 66.83 before finishing at 66.77, showing a loss of 15 paise or 0.23 per cent.

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

The domestic currency hovered in a range of 66.71 and 66.83 per dollar during the day.

In the global market, the dollar traded moderately higher yesterday against the euro and the yen, extending a recent streak of gains after hawkish comments from several Federal Reserve officials.

However, the dollar turned slightly lower against the yen during the late Asian trade today, as investors awaited US retail-sales data due later in the day.

The US currency fell into a tailspin recently, touching an 18-month low of ¥105.55 on May 3 following the Bank of Japan's inaction.

The market benchmark Sensex fell by 301 points to close at 25,489.57 on fresh selling pressure from operators on speculation that the Reserve Bank would restrain itself from cutting rates during its policy review next month following rise in inflation and dip in industrial output growth.

Meanwhile, the RBI fixed the reference rate for the dollar at 66.7609 and euro at 75.7202.

In cross-currency trades, the rupee recovered against the pound sterling to finish at 96.27 from 96.39 yesterday.

It also recouped against the euro to 75.80 from 75.91. However, the domestic currency declined against the yen to 61.32 per 100 yens from 60.96.

Pramit Brahmbhatt of Veracity Financial Services said, "The rupee opened considerably weak taking cues from domestic equity market, thus by strengthening USD. But the rupee continued to find support at 66.80/USD.

"Our benchmark index opened lower and closed lower thus by losing 85 points for the day. The fall in index governed today's more of rupee. The rupee closed with depreciation of 15 paise at 66.77/USD. Trading range for the spot USD/INR will be 66.40 to 67/USD."

In forward market, premium for dollar ended lower on good receivings from exporters.

The benchmark six-month premium for October fell to 195-197 paise from 198-200 paise yesterday and far forward April 2017 contract declined to 401-403 paise from 403-405 paise.

Meanwhile, oil fell in Asia today as investors took a breather from a recent price rally spurred by International Energy Agency's forecast that the crude oversupply would shrink dramatically later this year.