Rupee falls against US dollar; hits fresh 2 year low The rupee fell by another 35 paise to trade at fresh two year low of 65.89 against the dollar today on sustained capital outflows by foreign funds even as the US currency weakened overseas.Besides, strong demand for dollar from importers and banks and a lower opening in the domestic equity market weighed on the local currency, forex dealers said.The rupee dropped even as dollar weakened against other major global currencies overseas amid mounting global economic slowdown worries.The rupee had lost 27 paise to close at a new two year low of 65.54 against the US dollar yesterday following renewed demand for the American currency from banks and importers.
Dollar takes a hit on global growth jitters; Fed's rate hike prospects fade The dollar hit an almost eight week low against a basket of major currencies on Friday, after more bad economic data from China added to doubts that the US Federal Reserve will be able to raise interest rates next month. Markets had been reckoning the Fed could raise rates as soon as September, as the US economy continues to grow solidly, but the latest data from China, along with sliding commodity prices and unconvincing US inflation data, has seen most investors take their bets of a September hike off the table. The euro, which currently is often used as a "funding" currency borrowed in order to invest in riskier but higher yielding emerging market currencies, hit a two month high of $1.1295 as a risk off mood saw investors buy it back. The dollar index fell to 95.4, its weakest since June 30.
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