The Indian rupee on Thursday lost a hefty 35 paise to close at 46.65/66 against the dollar on renewed demand for the US currency amid fears of more capital outflows.
Dealers at the Interbank Foreign Exchange (forex) market said, dollar recovering in overseas markets also weighed on the rupee sentiment. Weakness in equity markets also put pressure on the local currency.
Besides, there was some dollar demand from importers. The Indian benchmark Sensex today dropped by 153.57 points or 0.91 per cent.
The domestic currency resumed lower at 46.37/38 a dollar against its previous close of 46.30/31 a dollar and later fell to a low of 46.66 before ending at 46.65/66 per dollar.
Most of the Asian stock markets ended lower by 0.07 per cent to 1.39 per cent except Taiwan weighted index, which was marginally up by 0.04 per cent.
Meanwhile, crude oil prices dipped below $79 a barrel in London.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.50 and for the euro at Rs 69.71.
Rupee premiums on the forward dollar ended slightly lower due to fresh receiving by exporters.
The benchmark six-month forward dollar premium payable in April moved down to 59-60 paise from 60-62 paise on Wednesday and far-forwards maturing in October also finished lower at at 121-1/2-122-1/2 paise as against 123-124 paise on Wednesday.
In cross-currency trade, the domestic currency declined against the pound sterling, the Euro and the Japanese yen.
The rupee fell against the pound to finish at Rs 77.26/28 from its overnight closing level of Rs 77.15/17 and moved down against the Euro to end at Rs 69.69/71 from Rs 69.59/61 on Wednesday.
The rupee reacted downwards against the Japanese yen to 51.98/52.00 per 100 yen from 51.48/50 on Wednesday.
Source : ndtv.com