Rupee sheds 16 paise against US dollar

The rupee had ended at a fresh one-month high of 66.92 on Wednesday after the RBI’s monetary policy decision to hike the repo rate by 25 basis points, surging 23 paise against the US dollar.

 The rupee fell 16 paise to 67.08 per US dollar in early trade on Thursday, after RBI’s rate hike amid fresh demand for the American unit from importers and banks.

On Wednesday, the RBI hiked the key policy rate for the first time in over four years -- by 0.25% -- to curb inflationary pressures from high oil prices.

Weakness in the US dollar against other currencies, including the euro, limited the rupee’s fall, analysts said.

The rupee had ended at a fresh one-month high of 66.92 on Wednesday, surging 23 paise against the US dollar.

Meanwhile, the benchmark BSE Sensex was trading higher by 207.83 points, or 0.59%, at 35,383.71 in opening deals.