Rupee sinks to new low of 72.18 against USD
The rupee today slumped to a fresh record low of 72.18 by falling 45 paise against the US dollar on strong demand for the US currency from importers. At the Interbank Foreign Exchange (Forex) market, the rupee opened at record-low of 72.15 a dollar from its previous close of 71.73 and slipped to hit a fresh low of 72.18, down by 45 paise.
Forex dealers explain reasons behind fall of rupee
The rupee had breached its previous record low of 72.11 hit on September 6. Forex dealers added that buying by importers, mainly oil refiners in view of surging crude-oil prices and capital outflows, weighed on the rupee. Furthermore, the USD strengthened against its rival currencies overseas amid fears of an escalation in the US-China trade conflict too put pressure on the rupee, they said.
Rupee made a turnaround on September 7 by 26 paise
The rupee on September 7 staged a turnaround to close higher by 26 paise at 71.73 after heavy intervention by the Reserve Bank of India. Meanwhile, the BSE Sensex dropped by 85.01 points, or 0.22%, to 38,304.81 in opening trade.