Indian Rupee plunges to new all-time low of 73.77, sheds 43 paise against US dollar

A day after hitting an all-time low, the Indian rupee repeated the dose and started on a very dismal note on Thursday. The rupee hit a new low of 73.77 after it plunged 43 paise against US dollar.

Indian Rupee plunges to new all-time low of 73.77, sheds 43 paise against US dollar
The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent at the interbank foreign exchange. Image Source: Reuters
By Agencies
Updated: Thu, Oct 04, 2018
09:50 am
ZeeBiz WebDesk
RELATED NEWS
Explained: How to exchange damaged Rs 2000, Rs 500, Rs 200, Rs 100 notes in India Explained: How to exchange damaged Rs 2000, Rs 500, Rs 200, Rs 100 notes in India
Rupee rises 14 paise to 71.82 against US dollar in early trade Rupee rises 14 paise to 71.82 against US dollar in early trade
Rupee rises 42 paise to 71.59 per US dollar in early trade Rupee rises 42 paise to 71.59 per US dollar in early trade
Assembly Election Results 2018: If BJP win comes in Madhya Pradesh, this is how Sensex, Nifty will react Assembly Election Results 2018: If BJP win comes in Madhya Pradesh, this is how Sensex, Nifty will react
Rupee plunges 110 paise to 72.42 per US dollar in early trade Rupee plunges 110 paise to 72.42 per US dollar in early trade

A day after hitting an all-time low, the Indian rupee repeated the dose and started on a very dismal note on Thursday. The rupee hit a new low of 73.77 after it plunged 43 paise against US dollar. On Wednesday, the Indian rupee plunged by 43 paise to breach the historic low of 73 level as soaring crude oil prices fuelled worries over capital outflows and widening current account deficit. The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent at the interbank foreign exchange.

In the day trade yesterday, the rupee crashed to its all-time low of 73.42 per dollar as crude oil prices breached the USD 85 per barrel mark, leading to huge outflows of cash. Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices, analysts said. After breaching the US 85 per barrel level, the benchmark Brent crude stayed near four-year high levels at USD 84.86 per barrel.

According to the provisional exchange data, foreign investors withdrew Rs 1,550 crore on a net basis from capital markets on Wednesday. Rising US interest rates and bond yields have encouraged investors to pull out funds from emerging markets to pocket better returns, analysts said. "The rupee has made a new record low today on the back of consistent rise in the crude oil prices. A sharp rise in crude oil along with steep depreciation in the rupee might push inflation higher in coming months," Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers.

The Reserve Bank refused to open a special window for oil marketing companies which affected market sentiments, VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities. Stocks also fell by more than 1.5 per cent due to the rupee falling to record low levels. The benchmark BSE Sensex plunged by 550 points or 1.51 per cent while the broader Nifty tanked 150 points or 1.38 per cent.

The rupee opened lower at 73.26 per dollar due to high crude oil prices against the last close of 72.91 per dollar. The currency pared some losses to touch a high of 72.90 per dollar on market speculation that RBI may open special dollar window for oil companies.

Watch This Zee Business Video Here:

However, without any clear signals from the central bank, the rupee crashed to all-time lows before settling at 73.34. Meanwhile, the FBIL set the reference rate for the dollar at 73.02 per dollar. The reference rate for euro was fixed at 84.57 against 84.37 previously and for the British pound at 94.98 against 94.88 on October 1.

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close