MUMBAI, DEC 4: The rupee slumped to an over two-year low on Friday, tracking weakness in global markets after the European Central Bank’s stimulus package fell short of expectations and renewed fears of a US rate hike.The rupee was trading at 66.96/97 to the dollar by 0554 GMT, its lowest since September 4, 2013. It had closed at 66.6525/66.6625 per dollar on Thursday.

Federal Reserve Chair Janet Yellen, speaking before Congress’ Joint Economic Committee on Thursday, had said the United States may be “close to the point at which we should be raising” rates.Forex dealers said gains in the dollar against major global currencies and a lower opening in the domestic equity markets weighed on the rupee.

The rupee had dropped by 6 paise to close at 66.65 in yesterday’s trade on sustained demand for US dollars by banks and importers on the back of higher greenback overseas.Meanwhile, the benchmark BSE Sensex dropped further by 201.35 points or 0.77 per cent to 25,685.27 in early trade.

Source: http://www.thehindubusinessline.com/

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