Rupee falls against US dollar; hits fresh 2-year low
NEW DELHI: The rupee fell by another 35 paise to trade at fresh two-year low of 65.89 against the dollar today on sustained capital outflows by foreign funds even as the US currency weakened overseas.
Besides, strong demand for dollar from importers and banks and a lower opening in the domestic equity market weighed on the local currency, forex dealers said.
The rupee dropped even as dollar weakened against other major global currencies overseas amid mounting global economic slowdown worries.
The rupee had lost 27 paise to close at a new two-year low of 65.54 against the US dollar yesterday following renewed demand for the American currency from banks and importers.
Reserve Bank of India Governor Raghuram Rajan has indicated that policy measures may be warranted to counter any long-term plan by the Chinese to push the yuan down to gain an edge on exports although actions thus far don’t seem to suggest such a strategy.