Forex: The rupee tumbled to nearly 2-year low to 65.34 against the American currency during the mid-week on fresh dollar demand from banks and importers on the back of higher dollar in the overseas market following devaluation of Chinese currency and fall in the crude oil prices. The rupee resumed slightly higher at 63.75 per dollar as against the last weekend's level of 63.81 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to 63.7350 on initial dollar selling by banks and exporters.
However, it dropped immediately to 2-year low to 65.34 per dollar at the fag-end of the week on fresh dollar demand from banks and importers on the back of higher dollar in the global market following devaluation of Chinese currency before ending at 65.00, still showing a loss of 119 paise or 1.86 per cent.
The domestic currency had last touched 65-level and ended at 65.24 per dollar after touching 66.32 per dollar during the intra-day trade on September 6, 2013. The local currency hovered in a range of 63.7350 per dollar and 65.3400 per dollar during the week. Meanwhile, oil prices seem set to witness their seventh weekly fall in Asia, with US crude tumbling to fresh six-year lows as investors are worried that a global supply glut is set to last longer.
A massive rout in currency and financial markets worldwide spooked by Chinese central bank's policy move along side heightened concerns about capital outflows in the face of imminent US interest rate hike predominantly weighed on the local currency, a forex dealer said.
