Rupee tumbles 59 paise to near 2-year low of 64.78

The domestic currency tumbled 104 paise, or 1.63%, in last six trading days

Declining for the sixth consecutive session, the rupee tumbled by 59 paise to nearly 2-year low at 64.78 against the US dollar on sustained demand for the American currency from banks and importers on the back of firm greenback overseas following yuan devaluation.

The rupee resumed lower at 64.55 as against yesterday's closing level of 64.19 at the Interbank Foreign Exchange (Forex) market and dropped further to 64.94 before ending at 2-year low of 64.78.

The domestic currency has tumbled by 104 paise, or 1.63 per cent, in last six trading days.

It hovered in a range of 64.55 and 64.94 during the day.

China's surprise decision to devalue the yuan sparked a sell-off in global currencies. The ones that were worst hit were those from economies whose exporters either rely on Chinese companies to buy their products or compete with their exporters for customers.

In the global market, the US dollar hit a fresh two-month high against the Japanese yen today while resource-related currencies such as the Australian dollar fell sharply against the US dollar, as Chinese authorities guided the yuan even lower.

China further guided its currency lower today after it roiled markets yesterday with its decision to push their currency down 1.9 per cent against the US dollar, the largest devaluation in years.

Oil prices extended losses in Asia today as Chinese economic worries and over-supply concerns added to downward pressure, analysts said.

Meanwhile, persistent fall in equity markets also affected the sentiments as the benchmark BSE Sensex ended lower by 353.83 points, or 1.27 per cent, to settle at 27,512.26.