The rupee partly trimmed its gains but was still trading strong by 11 paise at 66.37 due to sustained bouts of dollar selling by banks and exporters.

The rupee sentiment was dampened due to heavy capital outflows from the domestic equity market owing to heavy sell-off in global markets.

World stocks and commodity prices tumbled on Tuesday, as poor Chinese data saw fears about its economic health intensify.

The rupee opened higher at 66.38 per dollar against yesterday’s closing level of 66.48 at the Interbank Foreign Exchange (Forex) market.

However, it weakened to 66.46 on heavy capital outflows before being quoted at 66.37 at 3.40 pm local time. It moved in a range of 66.46 and 66.19 during the afternoon trade.

Meanwhile, the safe-haven yen and the low-yielding euro rose on Tuesday on concerns about China’s economy, as investors unwound bets against the two currencies widely used to fund positions in riskier assets.

The dollar fell 0.6 per cent to 120.50 yen, having retreated from a peak of 121.76 yen set late last week. The euro rose 1 per cent to $1.1315, extending its recovery from last week’s one-week low of $1.1156.

The benchmark BSE Sensex ended the session down by 586.65 points or 2.23 per cent at 25,696.44.

Source:- thehindubusinessline.com