Rupee slips to nearly 2-month low of 64.33 vs USD

Mumbai: The rupee extended its loss for the second straight day on Tuesday by tumbling 20 paise to nearly two-month low of 64.33 a dollar on sustained demand for the American currency from importers amid higher greenback overseas.

Heavy foreign capital outflows also dented the market sentiment. Foreign investors sold shares worth a net Rs 1,719.62 crore today, as per the provisional data issued by stock exchanges.

The rupee resumed lower at 64.18 per dollar as against yesterday's closing level of 64.13 at the forex market and dropped further to 64.34 before ending at nearly 2-month low of 64.33, showing a loss of 20 paise, or 0.31 percent.

The rupee had last settled at 64.37 per dollar on July 26, 2017.

The domestic currency has lost 25 paise, or 0.39 percent, in the last two days.

It hovered in a range of 64.13 and 64.34 per dollar during the day.

The RBI, meanwhile, fixed the reference rate for the dollar at 64.1769 and for the euro at 77.0187.

In London, the dollar hit an eight-week high against the yen on today as US central bank policymakers meet to discuss further monetary tightening, with renewed calm over North Korea easing demand for perceived safe havens like the Japanese currency.

However, the US dollar was largely lower against a basket of currencies in early Asian trade, while hovered near an eight-week high against the yen.

The dollar also retreated with traders erring on the side of caution ahead of the Federal Reserve rate decision that could offer clues on future policy and steer direction for the greenback.

In cross-currency trades, the rupee ended higher against the pound sterling at 86.81 as against the previous closing level of 86.86 per pound but fell against the euro to finish at 76.98 from 76.71.

The domestic unit also declined against the Japanese yen settle at 57.70 per 100 yens from 57.67 per yesterday.

However, the dollar index against a basket of six major currencies was trading 0.06 per cent lower in the late afternoon trade.

In forward market today, premium for dollar declined further on persistent receivings from exporters.

The benchmark six-month premium payable in February eased further to 118-120 paise from 119-121 paise yesterday and the far forward August 2018 contract also moved down further to 257.50-259.50 paise from 260-262 paise.

Meanwhile, the Indian benchmark Sensex declined by 21.39 points or 0.07 percent to end at 32,402.37.