Forex: The rupee ended the week lower by 16 paise

The rupee ended the week lower by 16 paise to 68.62 against American currency on persistent dollar demand from banks and importers in view of sustained foreign capital outflows amid fall in domestic equity market on the back of higher dollar overseas.

The domestic unit resumed lower at 68.60 per dollar at the Interbank Foreign Exchange (Forex) market as against the last weekend's level of 68.46 per dollar and dropped further to fresh 30-month low at 68.79 per dollar on month-end dollar demand from importers. However, it recovered to 68.45 before closing at 68.62 per dollar, still showing a loss of 16 paise or 0.23 per cent.

The rupee has tumbled by 98 paise or 1.45 per cent in three weeks. The rupee hovered in a range of 68.45 per dollar and 68.79 per dollar during week. The rupee had last ended at 68.80 per dollar on August 28, 2013 after touching 68.85 during intra-day trade on the same day.

The benchmark Sensex showed a weekly loss of 554.85 points or 2.34 per cent to end the week at 23,154.30. The Sensex recovered by 178 points or 0.78 per cent on Friday on fag-end buying ahead of the Union Budget after the Economic Survey projected the Indian economy to grow at 7-7.75 per cent in 2016-17, which could accelerate to 8 per cent in a couple of years.

However, the Sensex showed a weekly loss of 554.85 points or 2.34 per cent to end the week at 23,154.30. In New York market, the dollar surged against its main rivals yesterday and logged its first weekly gain out of four against the Japanese yen after a raft of economic data challenged the idea the US is tipping toward recession.

Stronger economic reports might embolden select Federal Reserve policy makers who believe the group should be open to raising interest rates at the Fed’s next meeting in March, lifting the appeal of dollar-denominated assets.