Rupee down 27 paise to 68.83 against dollar in early trade

41

MUMBAI: On Thursday Indian Rupee's fall continued for the fifth straight day as it depreciated by another 27 paise to hit a fresh 9-month short of 68.83 next to the dollar in early trade amid foreign fund outflows and the greenback's surge in abroad markets.

Forex dealers has also conveyed that, besides a strong month-concluded demand for the American currency from importers, continued capital outflows by foreign funds and the dollar's Bull Run on an imminent increase in Fed's interest rates, mostly weighed on the domestic currency.

 They have also further conveyed that, moreover, an inferior commencing of the domestic equity market also put pressure on the rupee. In Wednesday's session the rupee had down 31 paise to close at a new nine-month low of 68.56 next to the dollar.

The Indian currency shrunk 2.92 per cent as Donald Trump's victory in the US Presidential polls former this month.

A huge outflow of capital by foreign investors has been decreasing the rupee as they apprehend an impact on the economy in the short-term following the India's move to demonetise Rs 500 and Rs 1,000 banknotes.

 Rolling US bond yields and a strong dollar abroad are also contributing to the rupees down. For now, the BSE Sensex down by 145.97 points, or 0.56 per cent, to 25,905.84 points in near the beginning trade.