Rupee ends at 65.88, drops 15 paise

Falling for the second consecutive day, the rupee today lost another 15 paise against the US dollar to close at 65.88 on sustained demand for the American currency from banks and importers amid massive fall in domestic equities.

The markets benchmark BSE Sensex today plunged by over 541 points to settle below the 26,000-mark on heavy sell-off after ADB lowered India's growth forecast amid steep losses in Europe and lingering growth concern.

The domestic currency resumed slightly higher at 65.67 per dollar as against the overnight level of 65.73 at the Interbank Foreign Exchange market.

It hovered in a range of 65.95 to 65.55 per dollar during the day before concluding at 65.88, showing a loss of 15 paise or 0.23%.

It has lost 21 paise or 0.32% in two days.

"Some overnight comments from Fed officials have kept the hopes of a Fed hike later this year alive, and reassured markets about global growth.

"The FOMC holding rates in the recent policy resulted in EM currencies gaining against the dollar with the USD-INR currency pair settling below the psychological 66 per dollar figure," a dealer said.

The dollar index was up 0.11% in the late afternoon trade as against a basket of six currencies.

Oil prices fell in Asia, reversing sharp gains in the previous session, hit by a strong dollar and persistent concerns over a global supply glut.

Meanwhile, the benchmark BSE Sensex ended lower by 541.14 points or 2.07%.