Forex: In line with equity market, the rupee continued

Forex: In line with equity market, the rupee continued to fall against the American currency for the 4th consecutive week, slipping by another 32 paise to settle at 66.46 on persistent demand for the green currency from banks and importers coupled with sustained foreign capital outflows. Foreign portfolio investors (FPIs) continued their selling pressure as they sold shares net USD 467.88 million during the first four days of the week as per the SEBI's record.

The rupee opened lower at 66.25 per dollar as against the last weekend's level of 66.14 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 66.52 per dollar before ending the week at 66.46 per dollar, showing a loss of 32 paise or 0.48 per cent. The rupee has tumbled by 265 paise or 4.15 per cent in the four weeks. The domestic currrency hovered in a range of 66.10 per dollar and 66.52 per dollar during the week. The Indian benchmark Sensex tumbled sharply by 1,190.48 points or 4.51 per cent,. "Investors are still keeping their eyes on the stock market," a forex dealer said.

In the global market, the dollar finished the week on uneven footing, posting its second straight weekly gain against the euro, while weakening against the yen after Friday's closely watched jobs report delivered a hazy picture of the US labour market.