Rupee hits 65 level against dollar for first time since September 2013

NEW DELHI: Sliding for the seventh consecutive trading session, rupee depreciated 33 paise to fall below the psychological mark of 65 against the US dollar in trade on Thursday.

The domestic currency declined to as low as 65.10 to the dollar, its weakest since September 2013, when the currency was mired in its worst turmoil since 1991.

The local unit had appreciated as much as 12 paise in the early trade, but it could not hold gains as the session progressed.

"Rupee can move up to 65-66/$ range; it is still overvalued. Infact, importers should be prepared for a weaker rupee," said DBS Bank.

"Rupee will not touch 66 very soon," said Jayesh Mehta of BofA ML.

That said, “The local currency is in a much better position as compared to other Asian currencies,” the expert pointed out.

The domestic currency had tumbled 104 paise, or 1.63 per cent, in the preceding six trading days.

China’s surprise decision to devalue the yuan has sent shockwaves through global currency markets.

The ones that have been the worst hit are those from economies whose exporters either rely on Chinese companies to buy their products or compete with their exporters for customers, PTI said in a report.

(With inputs from PTI)