Rupee Nears All-Time Low, Falls Another 28 Paise to 68.84 to the Dollar

Credit: PTI

Credit: PTI

Mumbai: The rupee crashed to nearly a 39-month low of Rs 68.84 to one US dollar, plummeting by another 28 paise against the dollar in early trade on Thursday amid sustained foreign fund outflows and the greenback’s surge in overseas markets.

The domestic currency had hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013.

Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar’s bull run on an imminent hike in the Fed’s interest rates mainly weighed on the domestic currency.

Further, a lower opening of the domestic equity market also put pressure on the rupee, they said.

The rupee shed 31 paise to close at a new nine-month low of 68.56 against the dollar on Wednesday.

The Indian currency shrunk 2.92% since Donald Trump’s victory in the US presidential polls earlier this month.

A huge outflow of capital by foreign investors has been weakening the rupee as they apprehend an impact on the economy in the short-term following India’s move to demonetise Rs 500 and Rs 1000 banknotes. Surging US bond yields and a strong dollar overseas are also contributing to the rupee’s fall.

Meanwhile, the BSE Sensex fell by 145.97 points, or 0.56%, to 25,905.84 points in early trade on Thursday.

Categories: Economy

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