Rupee sinks to 2-year low at 65.40 against dollar

The rupee fell by 9 paise to trade at two-year low of 65.40 against dollar at the Interbank Foreign Exchange market on Wednesday as the US currency strengthened overseas. Forex dealers said apart from sustained demand for the US currency from importers and dollar's gain against other currencies overseas, lower opening in domestic equity markets put pressure on the rupee. The rupee had plummeted by 31 paise to end at two-year low of 65.31 against the US dollar on Monday.

Forex market was closed yesterday on account of Parsi New Year. Meanwhile, the benchmark BSE Sensex dropped by 110.29 points, or 0.39 percent, to 27,721.25.