Rupee sinks to lifetime low against US-Dollar, breaches Rs. 69-mark
What's the story
The Indian rupee has collapsed to a lifetime low of Rs. 69.10 against the US Dollar by plunging 49 paise in early trade today as rising crude oil prices deepened concerns about India's current account deficit and inflation dynamics. Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.
Details
Rupee opens at Rs. 68.87/USD against Rs. 68.61 earlier
At the interbank foreign exchange market, the rupee opened at Rs. 68.87 a dollar against Rs. 68.61 previously and sank to Rs. 69.10 in morning deals, falling 49 paise. Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher.
Information
Sensex down by 0.25% today
Forex dealers said higher crude oil prices and a declining rupee are a double whammy for India. Meanwhile, the benchmark Sensex was down by 90.26 points, or 0.25%, at 35,126.85 in early trade today.