Rupee dips further by 16 paise to 64.66

The rupee today weakened further by a steep 16 paise to close at 64.66 a dollar due to sustained demand for the US currency from banks and importers.
Fresh capital outflows against the backdrop of volatile global situation coupled with Fed rate hike fears also added to the pressure on the domestic currency.
The local unit opened substantially lower at 64.64 as compared to Monday's close of 64.50 at the Interbank Foreign Exchange (Forex) Market.
It oscillated between 64.59 and 64.70 most part of the day in the absence of any major trigger amid some caution adopted by participants.
Finally, it concluded at 64.66 per dollar, disclosing a loss of 16 paise, or 0.25 per cent.

The RBI, meanwhile, fixed the reference rate for the dollar at 64.6336 and for the euro at 71.8338.

Heavy month-end oil-related dollar demand along with greenback buying from banks probably at the behest of corporate clients also impacted the forex market sentiment.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 709.97 crore yesterday, according to provisional data.
Escalating geopolitical risks over North Korea along with European Central Bank chief Mario Draghi's overnight 'dovish' message that emphasised that the eurozone still requires substantial stimulus and the probability of a Italian snap elections weighed on the overall sentiment, a forex dealer commented.

However, continued optimism of fund inflows and rallying equity market helped the domestic currency to withstand any major fall.
Indian equities powered ahead relentlessly into fresh record-high territory for the fourth straight session on the back of steady buying pressure in key heavyweight stocks also supported by a smart rebound in pharma stocks after falling for nine days in a row.
The benchmark Sensex rose over 50 points to a new peak of 31,159.40, while broader Nifty settled at a record 9,624.55.
In cross-currency trades, the rupee retreated against the British Pound to end at 83.18 from 82.82 a pound and also fell back against the Japanese Yen to finish at 58.26 per 100 yens from 57.95 earlier.

The local unit, however, advanced further against the euro to settle at 72.10 as compared to 72.14 yesterday.
In worldwide trade, the US dollar traded little changed against a basket of other major currencies amid renewed political worries over Greece and Italy.
The dollar index, which tracks the US currency against a basket of six major rivals, was trading marginally up at 97.34.
In forward market today, premium for dollar showed steady to firm trend owing to lack of market moving factors.
The benchmark six-month premium payable in October was little changed at 125-127 paise from 125.5-127 paise, while the far forward April 2018 contract edged higher to 270-272 paise from 270-271 yesterday.

In the international commodity front, crude prices took a further steep fall, pressured by concerns that production cuts by the world's big exporters may not be enough to drain a global glut that has depressed the market for almost three years.
The Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers had pledged last week to extend output cut for 9 months last week.