Rupee breaches 73-mark now, hits all-time low of 73.34 against US dollar

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HIGHLIGHTS

  • Rupee hit 73.34 per dollar in early trade, an all-time low, and sharply lower than its previous close of 72.93
  • Sharp rise in global crude oil prices over the last two sessions weighed on sentiments
  • Benchmark 10-year bond yeild was up 6 basis points at 8.05 per cent

The rupee today breached the historic low of 70-mark against the US dollar NSE 0.19 % today before recovering at close on suspected RBI intervention and the finance ministry’s dismissing the concerns over its sharp fall.

The local currency crashed below the 70-mark in early trade to touch all-time low of 70.10 a day after bloodletting in global markets due to worries over Turkish economic crisis and a sharp plunge in the lira.

A rebound in oil prices, FII outflows and concerns over currrent account deficit weighed on the domestic currency, pushing it to fresh life-time lows.

At the Interbank Foreign Exchange (forex) market, the domestic currency dropped 43 paise to 73.34 against the US dollar in the early trade.

The rupee opened lower at 73.26 and weakened further to quote at 73.34 a dollar against its previous closing of 72.91 on Monday.

Foreign institutional investors (FIIs) sold shares net worth a net of ₹ 1,842 crore Monday, provisional data showed.

Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices that crossed the USD 85 per barrel.

The rupee Monday tumbled 43 paise to end at a two-week low of 72.91 against the US dollar on steady capital outflows.

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.

Forex market remained closed on Tuesday on account of Gandhi Jayanti.

Meanwhile, the BSE benchmark Sensex dropped by 137.62 points, or 0.38 per cent, to 36,388.52 in opening trade Wednesday.

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