Mumbai: Snapping its nearly 2-week winning spree against the American currency, the rupee on Tuesday dropped by 25 paise to end at 66.46 on fresh demand for the dollar from banks and importers amidst sharp fall in equity.
The rupee resumed marginally lower at 66.25 per dollar as against Monday's closing level of 66.21 at the Interbank Foreign Exchange (Forex) market and hovered in a wide range of 66.07 and 66.52 before finishing at 66.46, showing a loss of 25 paise or 0.38 per cent.
The rupee had gained by 50 paise or 0.75 per cent in two weeks. The domestic currency firmed up to 3-month high at 66.07 per dollar on Tuesday during the intra-day trade on initial selling of dollars by banks and exporters in view of sustained foreign capital inflows.
However, it fell to 66.52 on fag-end dollar demand from banks and importers due to fall in equity market in spite of 0.25 per cent rate cut by Reserve Bank. The dollar index was up by 0.18 per cent as against a basket of six currencies in the late Tuesday afternoon trade.
However, the yen was stronger against its rival currencies early today, jumping against the dollar, with yet another decline in the Tokyo stocks prompting buying in the Japanese currency.
Amid deteriorating corporate sentiment in Japan and oil price weakness, the benchmark Nikkei Stock Average NIK, -2.42% lost ground, boosting demand for safe-haven assets such as the yen. Oil prices tumbled further in Asia on dwindling hopes that key producers will reach an agreement to freeze output when they meet this month to discuss a global supply glut.
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