Rupee drops 6 paise to 63.66 on dollar buoyancy

Mumbai, Jan 11: The overnight recovery proved to be short-lived as the rupee once again turned shaky against the US dollar and settled lower by 6 paise to 63.66 on fresh bouts of demand for the American currency.
Besides, the dollar’s recovery against some currencies overseas alongside sustained withdrawal of funds by foreign portfolio investors (FPIs) largely weighed on trade.
Foreign institutional investors (FIIs) sold shares worth Rs 572.26 crore yesterday, as per the provisional data.
Forex traders moved cautiously ahead of the IIP data for November and Consumer Price Inflation (CPI) for December, to be released tomorrow.
Though, the home currency managed to withstand early dollar pressure after plunging to a low of 63.81 intra-day.
Overall forex sentiment remained buoyant on the hopes of more inflows from foreign investors, after the government announced FDI norms relaxation for some sectors.
The Union Cabinet yesterday permitted foreign airlines to invest up to 49 per cent in debt-laden Air India and eased norms for investment in single-brand retail, construction and power exchanges.
The domestic currency topped its fresh three-year high last Friday and strengthened by a healthy 50 paise for the first week of the new year. Agencies