Rupee Slips Further Low, USD Touching Nearly Rs 72 Mark
The Indian Rupee on Wednesday again fell to a fresh lifetime low on Tuesday, with the currency touching 71.86 to a dollar during the noon trade session.
At 1.39pm, rupee was trading at 71.86 a dollar, down 0.43% from Tuesday’s close of 71.57. It opened at 71.45 and touched a low of 71.97.
The Indian rupee opened the day’s trade at the Inter-Bank Foreign Exchange Market at 71.44-45 to a dollar from its previous close of 71.58 to a greenback.
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the weakness in the country’s equity and bond markets led to the rupee’s fall. The Rupee downfall is also impacting the stock market in a major way. Investors from capital markets such as BSE and NSE are significantly influenced by this fluctuation.
So far this year, the currency has weakened 11%, while foreign investors have sold $488.60 million and $5.75 billion in equity and debt markets, respectively.