Rupee hits new low of 73.34, plunges 43-paise against USD
The Indian rupee today crashed below the 73-mark against the dollar for the first time ever on strong demand for the American currency from importers amid rising global oil prices and unabated capital outflows. At the Interbank Foreign Exchange (forex) market, the domestic currency dropped 43 paise to 73.34 against the US dollar in the early trade. Here are more details.
Rupee opened at 73.26, weakened further to 73.34 against USD
The rupee opened lower at 73.26 and weakened further to close at 73.34 a dollar against its previous closing of 72.91 on Monday. Foreign institutional investors (FIIs) sold shares of net worth Rs. 1,842cr on Monday. Forex market remained closed yesterday due to Gandhi Jayanti. The rupee Monday tumbled 43-paise to end at a two-week low of 72.91 against USD on steady capital outflows.
Investors remain concerned over soaring crude oil prices
Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices that crossed the $85 per barrel. Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the domestic currency. Meanwhile, the BSE benchmark Sensex dropped by 137.62 points, or 0.38%, to 36,388.52 in opening trade today.