The rupee crashed below the key 66 level to settle at a 13-month low of 66.12 against the US currency, firming crude prices and a more hawkish tone of the RBI.
The country's forex reserves expanded by USD 1.217 bn to touch a life-time high of USD 426.082 bn in the week to April 13, helped by rise in foreign currency assets.
Bank of England Governor Mark Carney dampened widespread expectations for an interest rate hike in May, pointing out there were also “other meetings” this year.
Rupee weakened by 25 paise to breach the 66-level and hit its 13-month low of 66.05 against US dollar in the early trade today due to appreciation of dollar overseas.
The rupee sags to a 13-month low of 65.80 a dollar as growing worries over higher crude prices and likely fiscal slippages led to subdued forex market sentiments.
US dollar ended higher against the rupee at Rs.65.80/81 per dollar and the pound sterling also finished higher at Rs.93.68/70 per pound at the close of forex market.
Hong Kong’s central bank said it has confidence in 3-decade old peg to dollar, even as it continued to intervene to prop up the currency and as interbank rates jumped.
Rupee depreciated 15 paise to 65.81 against dollar in opening trade at the interbank forex market today on increased demand for the greenback from importers and banks.
Rupee today slipped by 2 paise to settle at a fresh seven-month low of 65.66 against the dollar, extending its fall for a third day amid surging crude prices.
Rupee today dropped by 2 paise to close at Rs.65.66/67 against the US dollar at the interbank foreign exchange market here.