Indian Rupee vs Dollar: Rupee settles at 66.82-level; what dampened sentiment in the currency

The Indian rupee stayed over 66-mark against US benchmark dollar index this week. On Friday, the domestic unit finished at 66.820 higher by 0.125 points or 0.19% against the American Unit in a highly volatile market at interbank forex. The weak domestic benchmark indices like Sensex and Nifty 50, coupled with steady capital outflows and the government has also asked OMCs to absorb Rs 1 per litre hike in their basket, thereby, providing them limited room for reduction in prices of fuel products. The rupee clocked a 14-month low of 66.91 a dollar last Wednesday, after that the Indian currency started recovering.

Indian rupee started with a mild negative bias at 66.65 from Thursday's close of 66.64 at the inter-bank foreign exchange (forex) market.

However, the follow-through weakness eventually pulled down the home currency to hit a fresh intra-day low of 66.92 in mid-afternoon deals as state-run and private banks stepped up dollar purchases for their importer clients, as per PTI reports. 

This led the domestic unit to settle at 66.82-mark against dollar on Friday. 

Moreover, the Sensex finished at 34,915.38 down by 187.76 points or 0.53%, whereas the Nifty 50 closed at 10,618.25  below 61.40 points or 0.57%. 

As for foreign portfolio investors, there was an outflow of Rs 52.01 crore recorded cumulatively in equity, debt and hybrid market, as per NSDL data on Friday.