Rupee retreats from 2-week high, Drops to 59.34

Rupee retreats from 2-week high, Drops to 59.34

THE Rupee fell from a two-week high 10 close three paise lower at 59.34 against the Dollar, failing to sustain gains driven by the easing of FDI norms in various sectors and the RBI's liquidity-tightening measures. Late Dollar demand from importers, a strengthening Dollar overseas and capital outflows also weighed on the Rupee, a forex dealer said. The Rupee moved in a range of 52 paise on alternate bouts of demand and supply, with confusion over sustainability of currency's stability after the RBI on Monday announced measures to address exchange rate volatility.

At the inter bank foreign exchange market, the Rupee opened at 59.14 to a Dollar from the previous close of 59.31 and rallied to a two-week high of 59.05 on the back of firm local equities amid sustained Dollar selling by exporters. It later fell to a low of 59.57 on renewed Dollar demand from importers.