Rupee plunges to 66.16 vs dollar, down 17 paise

The currency has dropped by 49 paise or 0.75% in four days

Hit by month-end dollar demand from importers, the rupee on Thursday dropped by another 17 paise against the American currency to close at 66.16, extending losses for  fourth straight day, amid mixed global cues.

Sustained foreign capital outflows also affected the market. Foreign portfolio investors sold shares worth a net Rs 1,330 crore on Wednesday, according to provisional data released by the stock exchanges.

The rupee resumed sharply lower at 66.20 a dollar against its overnight level of 65.99 at the Interbank Foreign Exchange market. It hovered in a range of 66.27 to 66.03 during the day, before ending at 66.16 per dollar, showing a loss of 17 paise.

The rupee has dropped by 49 paise or 0.75 per cent in four days. The dollar index was down by 0.40 per cent as against a basket of six currencies.

In global market, the yen rose on Thursday in Asia because market participants sought safety amid global economic uncertainty and ahead of a speech by US Federal Reserve Chairwoman Janet Yellen.

Concerns continued about a global economic slowdown and uncertainty over the timing of the US central bank’s potential interest rate increases.

Pramit Brahmbhatt, Veracity Group CEO said, “Today also rupee depreciated for the fourth consecutive day and weakened more than quarter per cent to trade comfortably over 66 levels, as month-end dollar demand from oil importers forced rupee to trade low and to end the day it closed at 66.16.”