Market players say the Dollar index is the new fear indicator for the market
The domestic unit on Wednesday lost 29 paise to close at 71.77 as fears of an impending global recession prompted investors to stick to safe-haven assets.
This is the highest closing for the home currency since September 13, when it had closed at 64.00
A breathtaking rally in domestic equities too weighed on the forex trading front
Yesterday, the rupee had gained 8 paise to end at a fresh one-week high of 64.37 a dollar
After a sluggish start to 2018, the US dollar staged a rebound against other major currencies in quiet trade
The benchmark Sensex zoomed over 301 points to close at 33,250.30 while the Nifty jumped 99 points to 10,265.65
The RBI, meanwhile, fixed the reference rate for the dollar at 64.3799 and for the euro at 76.3739
The rupee opened on a strong note and soared 35 paise to 69.79 a dollar against the previous close of 70.14
Consistent selling of dollars by some foreign banks and unwinding of short-term forward contracts by exporters mainly boosted the rupee trade
The preference of hedging instrument and tenure is also slowly changing, say currency dealers
The rupee closed at 70.73 a dollar, the sharpest fall in percentage terms since September 2013 when the taper tantrum sent EM currencies in a tizzy
On Tuesday the rupee had shed 3 paise at 64.40 against the US currency in a quiet session
The domestic unit on Friday ended at 71.66, up 15 paise.
The domestic unit on Tuesday tumbled 99 paise to settle at 72.39. That marked its worst single-day fall since August 5 and the lowest closing level since November 13, 2018.
The domestic unit on Wednesday recovered from initial losses to settle higher by 5 paise at 71.66, extending gains for a fifth straight session.
The domestic unit on Thursday climbed 52 paise to end at 71.14 as signs of easing trade tensions between the US and China buoyed global markets.
The domestic unit on Monday recovered from day's low levels to close flat at 70.94 on Monday helped by foreign fund inflows into equities and lower global crude oil prices.
The domestic unit declined 31 paise to close at 70.87 on Monday amid rising demand for the greenback vis-a-vis other currencies overseas.
The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point.