With mainly foreign capital outflows in the equity market, the rupee on Thursday plummeted to an over three-month low of 63.32 by losing 50 paise against the US dollar. The renewed demand for the American currency from banks and importers also added money market woes to some extent, causing the fall of rupee against US dollar.
The domestic currency on Thursday opened lower at 62.95 as against the last closing level of 62.82 at the Interbank Foreign Exchange and dropped further to 63.34 before concluding at 63.32, marking a loss of 50 paise. The rupee had last ended at 63.57 per dollar on Jan 6, 2015. Renewed dollar demand from banks and importers in view of higher dollar overseas also affected the rupee value against the dollar, according to a forex dealer.
Oil extended its gains in the Asian trade as renewed fighting in Yemen brought focus back on potential supply disruptions in the Middle East. The dollar index, a gauge of six major global rivals, was up by 0.03 per cent on Thursday. In New York market, the dollar firmed up after a 6.1 percent jump in US home sales data lifted expectations Federal Reserve policymakers may soon hike interest rates.