Re freefall continues, tests 82/$ for 1st time
Local unit plunges 37 paise to fresh all-time low of 81.90/$ as sluggish equity mkt and FPI outflows depletes investor appetite; Limited dollar support by RBI amid declining forex reserves is also leading to the current bout of selling spree in home currency
Re freefall continues, tests 82/$ for 1st time
Mumbai: The rupee plunged 37 paise to close at an all-time low of 81.90 (provisional) against the US dollar on Wednesday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit. In the intra-day trade, the rupee slipped below the 82-level for the first time against the American currency, as a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite.
At the interbank foreign exchange (forex) market, the local currency opened at 81.90, then fell further to close at an all-time low of 81.90 against the American currency, registering a decline of 37 paise over its previous close. On Tuesday, the rupee settled 14 paise higher at 81.53 against the dollar. The rupee has nose-dived to a fresh record low amid the risk-averse mood in the markets, said Sugandha Sachdeva, vice-president (commodity and currency research), Religare Broking Ltd.
