Rupee drops to new 2016 low, ends at 68.76

November 28, 2016 18:46

The rupee today tumbled by 30 paise to end at a fresh 2016 low of 68.76 due to deteriorating sentiment in the midst of worsening impact of fund outflows.

Frantic dollar demand from corporates along with aggressive hedging strategy adopted by importers in the wake of currency volatility predominately took a toll on domestic unit despite moves by the central bank to stabilise the currency.

Massive funds outflows in the wake of impending US Fed rate hike and a bullish dollar overseas have hit the rupee sentiment, a forex dealer commented.

Ongoing redemption pressure on foreign currency non-resident deposits also aided to the rupee woes, the dealer said further.

At the Interbank Foreign Exchange (forex) market, the local unit opened modestly higher at 68.42 from last Friday's closing value of 68.46.

However, the initial positive momentum failed to gain ground with the currency retreating sharply to hit a intraday low of 68.80 before ending at 68.76 - its lowest closing level so far this year - showing a steep loss of 30 paise, 0.44 per cent.

The rupee has shed 3.95 per cent of its value since the beginning of 2016.

The rupee had plunged to a record low of 68.8650 in day trade last Thursday before recovering on RBI intervention to settle at 68.74 -- the lowest level in 39 months.

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