Rupee plunges to over two-month low

Mumbai: The rupee plunged 17paise to settle at over two-month low level of 83.61 against the US dollar on Thursday amid surging crude oil prices due to renewed geopolitical tensions in the Middle East, even though the domestic equity markets hit fresh peaks. According to forex traders, inflow of foreign capital and positive momentum in domestic equity markets failed to support the local unit which gave in to the pressure due to a firm American currency against major rivals overseas. At the interbank foreign exchange market, the local unit opened at 83.43 and touched the intra-day high of 83.42 against the greenback. During the session, the currency hit an all-time low of 83.68 against the dollar. The rupee finally settled at 83.61 against the dollar, registering a steep fall of 17paise from its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. Earlier, the domestic currency closed at 83.61 against dollar on April 16 this year. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee depreciated on strong US dollar and mixed to weak Asian markets. “Traders may take cues from weekly unemployment claims, building permits, Philly Fed manufacturing index, housing starts and current account data from the US. USD-INR spot price is expected to trade in a range of Rs83.30 to Rs83.80,” Choudhary said.