Rupee starts 8 paise down at 66.20 against dollar

The rupee cut a sorry figure again on Monday as it opened 8 paise down at 66.20 against the dollar, with firm crude prices and a more hawkish tone of the Reserve Bank taking their toll.

Buying of the American currency by banks and importers gave the dollar more strength.

The domestic unit slipped 32 paise on Friday to close at 66.12 -- more than one-year low -- as RBI’s surprise hawkish tone clouded overall sentiment. Selling by foreign institutional investors as well as firm crude oil put on more pressure on the rupee.

Angel Broking said, “The US Treasury Department added India to its watch list of countries with potentially questionable foreign exchange policies, joining China and four others which impacted sentiment of forex traders.”

Benchmark equity indices opened in the green following mixed global cues. The BSE Sensex opened up 78 points, or 0.23 per cent, at 34,493.69 on Monday. The NSE Nifty started higher by 29 points, or 0.27 per cent, at 10,592.80.

Oil prices slipped marginally on Monday as a rising US rig count pointed to further increases in the country’s output. Brent crude oil futures were at $73.99 per barrel.