Rupee plunges 34 paise to 67.46 against dollar

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The rupee on Friday witnesses a sharp decline to open 34 paise down at 67.46 against the US dollar on account of buying of American currency by banks and importers.

The local currency on Thursday slipped 20 paise to 67.12 against the greenback as revival in global crude prices renewed India’s concerns on the fiscal front.

According to Choice Broking, demand for the dollar continued to be underpinned by expectations for a rate hike by the Federal Reserve at its upcoming meeting next Wednesday.

Meanwhile, domestic equity markets opened in the red following global cues. The BSE Sensex opened 56.61 points, or 0.16 per cent, down at 35,406.47, whereas NSE Nifty index opened 31.95 points, or 0.30 per cent, down at 10,736.40.

India’s 10-year benchmark bond yield surpassed 8 per cent — its highest in over three years — on Friday after the Reserve Bank upped the benchmark rate by 25 basis points.

The bond yield was last seen at the same level in May 2015.

For a net oil importer like India, a sustained rise in crude oil price leads to adverse macroeconomic implications.

Besides, concerns of higher US yields and foreign fund outflows from stock and bond markets also added pressure on the rupee front even as corporate demand for the greenback remained strong.

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