Rupee drops further by 20 paise vs dollar, ends at 66.66

Higher crude oil prices in global market afftected the market sentiment

Extending its losses for the second day, the rupee today dropped further by 20 paise to end at 66.66 per dollar on persistent dollar demand from banks and importers amidst fresh foreign capital outflows.

Higher crude oil prices in global market also afftected the market sentiment, dealers said.

Weakness of dollar in the overseas market failed to restrict the rupee's fall against the dollar, they added.

Fresh foreign fund outflows mainly affected the rupee value against the dollar. FPIs sold shares worth Rs 800.79 crore yesterday, as per the provisional data.

The rupee opened marginally higher at 66.42 as against yesterday's level of 66.46 per dollar at the Interbank Foreign Exchange (Forex) market and moved up further to 66.37 per dollar on initial selling of dollars by banks and exporters.

However, it dropped afterwards to 66.73 per dollar on fag-end dollar demand from banks and importers before ending at 66.66 per dollar, still showing a loss of 20 paise or 0.30 per cent.

The domestic currency tumbled by 45 paise or 0.68 per cent in two days.

Crude oil prices climbed in Asia today after Kuwait said an agreement to freeze output during a producers' meeting this month could still be reached despite conflicting statements by participants.

US benchmark West Texas Intermediate for delivery in May was up 97 cents, or 2.70 per cent, at USD 36.86 and Brent crude for June was 68 cents, or 1.80 per cent, higher at USD 38.55.