Rupee opened at 66.44 a dollar level but was already under some pressure as US dollar strengthened against major global currencies
Increased selling of the dollar by exporters and banks and a higher opening in the domestic equity market supported the rupee
Meantime, Bank of Japan (BoJ) kept interest rates on hold at minus 0.1 per cent
Currency investors across the globe are cautiously awaiting the FOMC outcome
Rupee firmed up 16 paise to 66.86 against the dollar in early trade on Friday
Currency settles down after finance and commerce ministries deny meeting next week
A low rate makes the country less attractive for a foreign investor and the inflow thins, which puts further pressure on the local currency to depreciate
Economic affairs secretary Shaktikanta Das denied any such move to boost dwindling exports
A television channel reported that the commerce ministry will propose a devaluation in the unit to promote dwindling exports
Indian currency fell abruptly after devaluation reports, but trimmed losses after denial from the government
RBI has made it clear in the past that its primary focus is on bringing down currency volatility and it is not for any particular value of the rupee
Meanwhile, BSE Sensex rose by 60.51 points at 28,432.74 in early trade today
Re-emergence of Fed rate hike alongside aggressive hedging strategy adopted by importers has predominantly kept home currency under intense pressure
Rupee depreciation between July 2015 and July 2016 has been equal to the rate of Consumer Price Index
Dealers attributed rupee's fall to increased demand for US currency and a lower opening in domestic equity market
Exchange rates for the pound and the yen against the rupee were quoted at 88.6088 and 65.33 per 100 yens, respectively
A rally in local stocks and sluggish dollar abroad supported the rupee
GDP data for the June quarter and fiscal deficit data for July will be released on Wednesday
The domestic currency had depreciated by 5 paise to end at 67.11 per dollar yesterday
Stock markets ended negatively with investors adopting cautious stance after appointment of Urjit Patel, who is unlikely to cut rates