Rupee tumbles 16 paise against dollar, hits 65.88

The rupee took more blows today as it slipped 16 paise to a fresh six and a half month low of 65.88 against the dollar that gained clout overseas on talk of a US rate hike and the prospect of monetary stimulus pullout.The US Fed’s policy decision and commentary led to foreign investors heading to the exit door here. Month-end demand from importers for the US currency is at work, forex dealers said. The dollar’s gains against other currencies overseas put the squeeze on the local unit.Yesterday, the rupee plunged 27 paise to end at 65.72.Meanwhile, the benchmark Sensex fell further by 44.27 points, or 0.14 per cent, to 31,115.54 in the opening trade today.