Rupee falls to over 2-year low of 66.76

Consequently, the Indian currency has been under pressure and slipped to its lowest level in two years. The currency has dropped over two per cent in November, the worst performance in Asia even as foreign holdings of rupee-denominated bonds have fallen by $558 million, the most since May.

The dollar index was up by 0.13 per cent as against the basket of six major currencies in late afternoon trade. The dollar was nearly unchanged against the yen and the euro in Asian trade today. With the exception of the Turkish lira, flight to the safety of the dollar has largely subsided following the Turkish military’s downing of a Russian fighter.

The market focus is now on the European Central Bank’s policy meeting on December 3, and the magnitude of potential easing steps, traders said. Investors have largely factored in a possible US Federal Reserve decision to raise short-term rates in December, but are skeptical about further monetary tightening in the months ahead, they added.

Meanwhile, surging for the second day, the BSE benchmark got a fresh lease of life on frenzied buying and ended up 169.57 points, or 0.65 per cent, at 26,128.20 — a level last seen on November 6. Also, the NSE Nifty closed at 7,942.70 rising 58.90 points.