Rupee closes at more than two-year low at 66.76

They said, however, a higher opening in domestic equity market capped the losses, they said.

Dealers said that upbeat sentiment surrounding the US dollar post a slew of positive U.S. economic data released earlier this week has strengthened hopes of an interest rate-hike in the United States in December.

The rupee declined by 19 paise to end at more than two-year low of 66.76 against the USA dollar on month-end demand for the American currency from importers and some banks.

The local unit, which had advanced by 15 paise in last session, opened weaker by nine paise at 66.41.

The Reserve Bank of India likely sold dollars through state-owned banks to stem the rupee’s fall around 66.88 per dollar, three state-owned bank traders told Reuters.

The dollar index was up by 0.13 per cent as against the basket of six major currencies in the late afternoon trade.

The dollar was almost unchanged against the yen and the euro in Asian trade on Friday.

Meanwhile, the benchmark BSE Sensex advanced by 103.98 points, or 0.40 per cent, to 25,879.72 in early trade on Thursday.

In forward market, premium for dollar eased further on persistent receivings from exporters.

These rates were 66.38 and 70.55, respectively, as on November 24.

The domestic currency dropped further against the Japanese currency to close at 54.45 per 100 yen from 54.30.