Rupee tumbles by 65 paise against US dollar

Rupee slid to near two-year low by 65 paise to 64.85 against the US dollar in early trades today.

Rupee saw high volatility after a 1.9-percentage point cut in the daily reference rate by the Chinese central bank on Tuesday, in a bid to revive the world's second economy from a sharpest economic slump in about 25 years.

In an interview to Now, Nick Parsons of National Australia bank said, "Yuan devaluation will worsen background for Asian currencies.”

Today, most Asian currencies were trading weak, with Malaysian Ringgit tumbling beyond 4/dollar for first time since 1998.

An array of upbeat economic data releases in the US in recent times have raised hopes that the US Federal Reserve is on track to raise interest rates in its September policy review.

Economic conditions in the United States have largely returned to normal and a Federal Reserve decision to raise interest rates should come soon, Atlanta Fed President Dennis Lockhart was quoted by Reuters as saying.

Dollar index, which tracks the movement of the greenback against a trade-weighted basket of six major world currencies, declined 0.20% to 97.12.

(Image: Reuters)