Indian rupee’s losses narrow, still down 2 paise against dollar

The rupee quickly covered ground from its early losses today, but was still stuck at its six and a half month low against the dollar following sustained month-end demand for the American currency.

It was trading down 2 paise at 65.74 amid a surging dollar overseas. The rupee resumed lower at 65.78 as against yesterday’s closing level of 65.72.

It slid further to 65.89 before quoting 65.74 at 1030 hours. Concerns of capital outflows continue to weigh on sentiment, dealers said. FPIs withdrew over Rs 1,858.29 crore on a net basis from stock markets yesterday, as per provisional exchange data.

Overseas, the US dollar traded near a one-month high against a basket of currencies in early Asian trade, underpinned by hopes that US President Donald Trump’s administration may be making progress on fiscal reforms.

The BSE Sensex was up 76.49 points, or 0.25 per cent, at 31,236.30 today.