Rupee slips to record low of 79.48/USD

Mumbai: The rupee depreciated by 22 paise to close at a fresh lifetime low of 79.48 against the US dollar on Monday, tracking a strong greenback overseas and subdued domestic equities.

However, receding crude oil prices in the international market restricted the rupee's loss, forex traders said.

At the interbank forex market, the local unit opened weak at 79.30 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.49. It finally settled at 79.48, down 22 paise over its previous close of 79.26.

The dollar index, which measures the greenback's strength against a basket of six currencies, advanced 0.56 per cent to 107.60.

Meanwhile, the Reserve Bank on Monday asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

Before putting in place this mechanism, banks will require prior approval from the Foreign Exchange Department of the Reserve Bank of India (RBI), the central bank said in a circular. "In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR," it said. For settlement of trade transactions, the concerned banks will require Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country.