Rupee tumbles 31p to over 2-year low

The rupee plummeted by 31 paise to end at over two-year low of 65.32 against the US dollar on Monday on the back of consistent demand for the greenback from importers and state-run banks.

Sluggish trade data amid highly volatile global currency market sentiment in the aftermath of China's yuan devaluation predominantly weighed on trade, forex dealers said.

Besides, fresh bouts of selling in local equities added pressure on the local currency.

The dollar edged higher against other major currencies amid uncertainty over the impact of the yuan's devaluation last week as well as global inflation expectations against the backdrop of Fed rate hike.

The rupee resumed lower at 65.12 as against last weekend’s level of 65.01 at the Interbank Foreign Exchange (Forex) market on good dollar demand amid higher greenback overseas as well as weak domestic equity markets.

It kept falling during the trade to hit a fresh low of 65.36 before finishing at 65.32, showing a fall of 31 paise, or 0.48 per cent.

The domestic currency had recovered 10 paise after sliding for seven straight sessions to close at 65.01 against the dollar in Friday’s trade.

The country's exports contracted for the eighth straight month in July to $23.13 billion, pushing the trade deficit to $12.81 billion.

The US dollar index, which measures greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14 per cent at 96.74.