Rupee plunges to new 2 year lows of 65.10 on yuan woes

The currency dropped 2.13% in the last seven trading sessions as the Chinese central bank's continued effort to guide the yuan lower

Continuing its downward march for the seventh straight session, the rupee today plummeted by 32 paise to close at 65.10 against the dollar, hitting its weakest level last seen in September 2013, as China further devalued yuan.

The rupee resumed higher at 64.72 as against yesterday's closing level of 64.78 at the Interbank Foreign Exchange and firmed up to 64.63 on initial dollar selling by exporters on the back of recovery in the equity market.

But, the domestic currency failed to maintain earliar gains and dropped to 65.23 before ending at 65.10 on fresh dollar demand from banks and importers, showing a loss of 32 paise or 0.49 per cent.

The rupee has dropped by 136 paise or 2.13 per cent in the last seven trading sessions as the Chinese central bank's continued effort to guide the yuan lower.

The domestic currency had last touched 65-level and ended at 65.24 on September 6, 2013.

It moved in a range of 64.63 and 65.23 during the day.

The dollar was moderately higher against the yen and the euro in the global market today.

Meanwhile, the Indian benchmark Sensex recovered by 37.27 points or 0.14 per cent to end at 27,549.53.