Rupee suffers more losses against dollar

The interbank exchange rate closed at Rs280.29 per dollar on Wednesday as the local currency lost 1.16 per cent value from a day ago. The increase of Rs3.26 in the dollar rate marked the second consecutive day of the rupee’s depreciation, which follows an unusually long period of the local currency gaining strength against the greenback for 28 straight sessions. The overall gain in the rupee’s value since Sept 5, when the exchange rate hit the highest level of Rs307.10, has been 8.73pc. Analysts believe the reversal of the month-long trend in the foreign exchange market is reflective of growing pressure on the dollar. According to Arif Habib Ltd Head of Research Tahir Abbas, there’s a higher demand for the greenback in the banking market for upcoming foreign payments, which is leading to some erosion in the rupee’s newfound strength.