On Tuesday, rupee had plunged by 53 paise to close at 70.21 against US dollar.Mumbai:The rupee on Wednesday extended its losses by another 25 paise to close at 70.46 against US dollar as continued rise in global crude oil prices weighed on sentiments.
Besides, stronger US dollar against major global currencies also put pressure on domestic currency.
At Interbank Foreign Exchange (forex) on Wednesday, rupee opened on a firm note at 70.08, but soon pared its initial gains and fell to an intra-day low of 70.65 against US dollar.
The domestic currency, however, recovered some lost ground and finally settled for day at 70.46 per dollar, down 25 paise over its previous closing.On Tuesday, rupee had plunged by 53 paise to close at 70.21 against US dollar.
"Indian rupee depreciated ahead of Sino-American Trade deal statement.
Along with risk-on sentiment and rise in crude oil added pressure on rupee," said V K Sharma, head PCG and capital markets strategy, HDFC Securities.The US and Chinese negotiators extended trade war talks into a third day Wednesday, and traders believe that extension shows both sides are serious about negotiations.Meanwhile, Brent crude futures, global benchmark, were further up and trading at 59.75 per barrel, a rise of 1.75 per cent.The dollar index was trading lower by 0.06 per cent at 95.84 against a basket of six currencies in late afternoon trade.
"Positive trade deal is mostly discounted in dollar and it might not move significantly lower than prevailing prices even after final statement of deal," said Mr Sharma.
Meanwhile, foreign funds bought shares worth Rs 276.14 crore from capital markets on a net basis, while domestic institutional investors bought shares worth Rs 439.67 crore on Wednesday, provisional data showed.Continuing its rising spree for fourth session, benchmark BSE Sensex reclaimed 36,000 mark by jumping over 200 points Wednesday.
The 30-share index settled at 36,212.91, showing a gain of 231.98 points, or 0.64 per cent.
The NSE Nifty also gained 53 points, or 0.49 per cent, to settle 10,855.15.