Rupee down 1 paisa, inches closer to all-time low of 68.85 against US dollar

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NEW DELHI: The rupee depreciated 1 paisa to 68.73 against the US dollar in early trading on Friday to hover around its all-time low of 68.85 hit on August 28, 2013.

The domestic currency had hit a low of 68.77 on Thursday, before closing the day at 68.72 against the greenback.

“Equity outflows in February have been around $650 million. Such outflows normally should not create such a huge impact in the currency market. I think it is more a sentimental impact which is happening today, where people are positioning themselves in a manner where if there is some huge negative in the Union Budget, then it could lead to a big selloff and lead the rupee down further. So my guess is that this weakness could actually reverse post the Budget,” said Sandip Sabharwal,asksandipsabharwal.com.

Data available with depository suggested that foreign portfolio investors have sold equities worth Rs 15,000 crore in this year. The institutional category has also reduced its exposure to domestic bonds by Rs 3,067 crore during the same period.

The dollar index which tracks the movement of dollar against a basket of six major world currencies fell 0.06 per cent to 97.22.

Most Asian currencies gained on Friday. The Taiwanese dollar was up 0.74 per cent to 33.25 per the US dollar. The Malaysian ringgit was up 0.46 per cent against the greenback. The Korean won (up 0.23 per cent), the Singapore dollar (up 0.17 per cent) and the Japanese yen (up 0.12 per cent) were trading higher.