MUMBAI, DEC 17:  

The rupee partly wiped off its early losses but was still trading weak at 63.59 against the dollar at 11.05 am local time.

The rupee opened weak by 19 paise at 63.73 against the previous close of 63.54 on heavy capital outflows due to negative growth data and global economic concerns amid sharp fall in peer currencies.

It hovered in the range of 63.59 and 63.89 in the morning trade.

“Amid weaker domestic growth data and higher non-deliverable forwards, the rupee declined as market investors panicked.The Russian currency rouble also hit fresh lows against the dollar and the euro,” said a dealer with a public sector bank.

Experts say the rupee may continue to trade with a downward bias towards 64 to 64.30 levels in the near term. As more central banks may join the US central bank in its rate hike cycle, there is an expectation that it would result in forex outflows.

Forex dealers said besides the dollar’s gains against other currencies overseas, heavy demand from oil importers for the American currency and a weak opening in the domestic stock market continued to put pressure on the rupee.

The domestic unit had plummeted to 13-month low of 63.54 by falling 60 paise against the dollar in yesterday’s trade due to heavy demand for the US currency from importers and some banks amid falling oil prices and chaos in stock markets.

Meanwhile, the benchmark BSE Sensex declined by 117.04 points, or 0.44 per cent, to 26,664.40 in early trade.

The overnight call money rate, the interest rate at which banks borrow from each other to overcome liquidity mismatches, opened flat at 8.90 per cent.

The 10-year benchmark government security (8.40 per cent G-Secs maturing in 2024) yield hardened to 7.99 per cent from Tuesday’s close of 7.97 per cent. The prices weakened by to Rs. 102.65 from Rs. 103.80.