MUMBAI: The rupee on Thursday fell slightly below the 65 level to the dollar, breaching the level for the first time since September 2013, as it continued to reel after China devalued the yuan earlier this week.
The rupee failed to maintain its initial gains against the American currency and was quoting lower 22 paise at 65 per dollar on fresh dollar demand from banks and importers.
Traders said the Reserve Bank of India had likely sold dollars at around the 65 level to slow the rupee’s falls.
The rupee was trading at 64.92 to the dollar from Wednesday’s close of 64.77/78. It had earlier fallen to as low as 65.0050 to the dollar, its weakest since September 2013, when the currency was mired in its worst turmoil since 1991.
The rupee resumed higher at 64.72 as against yesterday’s closing level of 64.78 at the Interbank Foreign Exchange ( Forex) Market and firmed up to 64.63 on initial dollar selling by exporters on the back of recovery in the equity market.
But it failed to maintain early momentum, trading lower by 20 paise at 65 per dollar on fresh dollar demand from banks and importers.
It moved in a range of 64.63 and 64.99 during the morning trade.