Rupee hits 3-week low of 65.31, tumbles 38 paise

Rupee hits 3-week low of 65.31, tumbles 38 paise

The rupee on Thursday slumped by 38 paise to close at more than 3-week low of 65.31 against the American currency on month-end dollar demand from importers and some banks in view of firm greenback overseas.

The rupee resumed lower at 65.15 per dollar as against the last closing level of 64.93 at the Interbank Foreign Exchange Market and dropped further to 65.31 before finishing at more than 3-week low of 65.31, showing a loss of 38 paise of 0.59 per cent.

The rupee had last ended at 65.41 per dollar on October 6, 2015. It hovered in a range of 65.12 and 65.31 per dollar during the day. The yen strengthened against its rival currencies in late Asian trade on Thursday, as investors bought the Japanese currency after unexpectedly strong industrial output data lowered expectations for an extra monetary easing measures from the Bank of Japan.

However, in the overseas market on Wednesday, the US dollar soared after Federal Reserve policy makers left the door open for an interest-rate hike in December. The Federal Open Market Committee said it would assess progress both realised and expected toward its objectives of maximum employment and 2 per cent inflation at their next meeting, which ends December 16, adding that it would keep an eye on global economic and financial developments.

Meanwhile, the Indian benchmark senses dropped further by 201.62 points or 0.75 per cent to close at 26,838.14.