Foreign capital outflows also affected the rupee value against the dollar, a forex dealer said.
Foreign Portfolio Investors and Foreign Institutional Investors sold shares worth a net Rs 362.19 crore yesterday as per the provisional data issued by stock exchanges
The rupee opened lower at 66.62 as against yesterday’s closing level of 66.56 at the Interbank Foreign Exchange (Forex) Market and moved down further to 66.6825 on initial dollar demand from banks and importers.
Later, it trimmed its earlier losses and recovered to 66.5350 in view of recovery in the equity market before ending at 66.62 per dollar, a loss of 6 paise or 0.09 per cent.
It moved in a range of 66.5350 and 66.6825 per dollar during the day.
The dollar was moderately higher against the yen in range-bound Asian trade today with investors sitting on the sidelines amid a lack of fresh trading cues.
Meanwhile, the RBI fixed the reference rate for the dollar at 66.5977 and euro at 76.0612.
In cross—currency trades, the rupee dropped against the pound sterling to finish at 96.39 from 96.09 yesterday.
It also declined further against the euro to 75.91 from 75.87.
However, the domestic currency moved up against the yen to 60.96 per 100 yens from 61.19.
source:thehindu.com/business/markets/rupee-reacts-downward-by-6-paise-to-6662/article8590762.ece
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