Rupee starts 2016 on a weak note, down 5 paise against dollar

Friday, Jan 1, 2016,10:08 IST By metrovaartha A A A

Mumbai | The rupee depreciated by five paise to trade at 66.20 against the US dollar on the first trading day of 2016 due to fresh buying of the American currency by banks and importers.

At the Interbank Foreign Exchange, the rupee was trading lower by 5 paise against the previous close of 66.15. Dealers said increased demand for the American unit from importers and a lower opening in the domestic market weighed.

Dollar’s gain overnight against major world currencies also influenced the rupee movement, they added. The rupee had appreciated 24 paise to end at 66.15 against the greenback yesterday.

Marking the fifth consecutive year of depreciation, the rupee ended 2015 with a yearly loss of 312 paise, or 4.95 per cent, against the US dollar on heavy funds outflows.

Meanwhile, the benchmark BSE Sensex fell 51.29 points, or 0.20 per cent, to 26,066.25 in early trade.