Rupee plunges 19 paise to over 2-year low of 66.76 against USD

Mumbai: The rupee tumbled by 19 paise to end at more than two-year low of 66.76 against the US dollar Friday on month-end demand for the American currency from importers and some banks.

Besides, persistent foreign capital outflows affected the market sentiment, forex dealers said.

The domestic currency opened lower by 66.66 as against yesterday's closing level of 66.57 at the Interbank Foreign Exchange (Forex) market and dropped further to 66.89 before ending at more than 2-year low of 66.76, showing a loss of 19 paise or 0.29 percent.

The rupee had last ended at 67.07 on September 4, 2013.

The local currency has dropped 44 paise, or 0.66 percent, in two days.

It moved in a range of 66.65 and 66.89 during the day.

The dollar index was up by 0.13 per cent as against the basket of six major currencies in late afternoon trade.

The dollar was nearly unchanged against the yen and the euro in Asian trade today.

With the exception of the Turkish lira, flight to the safety of the dollar has largely subsided following the Turkish military?s downing of a Russian fighter.

Attention is now on the European Central Bank's policy meeting on December 3, and the magnitude of potential easing steps, traders said.

Investors have largely factored in a possible US Federal Reserve decision to raise short-term rates in December, but are skeptical about further monetary tightening in the months ahead, they added.

Meanwhile, the benchmark BSE Sensex rose by 169.57 points, or 0.65 percent, to settle at 26,128.20.

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

The benchmark six-month premium payable in April ended steady at 177-179 paise while far forward October 2016 contract eased further to 385-387 from 387-389 paise.

The RBI fixed the reference rate for the dollar at 66.7503 and for the euro at 70.8755.

The rupee moved down further against the pound sterling to end at 100.63 from 100.41 yesterday and declined against the euro to settle at 70.71 as against 70.64 in the previous session.

The domestic unit dropped further against the Japanese currency to close at 54.45 per 100 yen from 54.30 in last session.