Rupee tumbles to over 5 week low at 64.04

Persistent fall in equity market affected the currency value against the dollar

Extending its losses for the third day, the rupee today fell by another 27 paise to end at more than 5-week low of 64.04 per dollar on persistent demand for the US currency from banks and importers amid higher greenback against major rivals overseas.

Persistent fall in equity market also affected the rupee value against the dollar, a forex dealer said.

The rupee resumed sharply lower at 63.99 per dollar as against the last closing level of 63.77 at the Interbank Foreign Exchange market and dropped further to 64.06 to close at more than 5-week low of 64.04, showing a loss of 27 paise or 0.42 per cent.

The rupee had last closed above the 64 level on June 17, 2015, when it ended at 64.12.

The rupee has lost 49 paise or 0.77 per cent in the three days.

It moved in a range of 63.87-64.06 per dollar during the day.

The dollar index, which tracks the greenback against a basket of major currencies, was trading up by 0.19 per cent.

Oil prices rebounded in early trade after settling at their lowest in the previous session as worries over the demand outlook and continued oversupply weighed on the market.

Several currencies in the Asian Pacific region dropped to fresh multi-year lows today, while the dollar advanced against its major rivals.

"The weaker commodity price is helping to boost the dollar's value against emerging market currencies," said Marshall Gittler, head of global foreign-exchange strategy, at Iron FX, in a note tdoay.

Meanwhile, the benchmark 30-share index Sensex ended lower by 258.53 points or 0.91 per cent.