Rupee weakens to 28-month low of 68/USD; lowest since 2013

The Indian rupee declined further on Wednesday. It tested a 28-month low of 68 to the dollar, last seen in September 2013.In morning trade, it opened lower by 12 paise at 67.77 per dollar against its previous close of 67.65. The Indian rupee has depreciated 2.4 percent against dollar in 2016 so far"USD-INR pair is expected to trade higher amid overall pessimism. Weakness in Yuan may also keep rupee under pressure," says Himanshu Arora of Religare. He sees the USD-INR range between 67.48-68/dollar.Key highlights#Dollar buying began with yesterday's short dollar positions getting covered#FIIs buying hedges or buying cash after selling equities#Exporters not supplying#No debt fund dollar buying yet#Rupee's outstanding stability needs to be preserved