Rupee closes at a historic low of 63.13 Vs dollar
Despite various steps taken by the Reserve Bank of India, the Indian rupee on Monday closed at a historic low of 63.13 against the dollar. During the day, it had touched a low of 63.22 before gaining some ground.
Zee Media Bureau/Reema Sharma/Rd. Alexander
Mumbai/New Delhi: Despite various steps taken by the Reserve Bank of India, the Indian rupee on Monday closed at a historic low of 63.13 against the dollar, dropping by 148 paise, the biggest single day drop in a decade.
During the day, it had touched a low of 63.22 before gaining some ground.
The rupee lost on heavy FII selling as the steps unveiled by the government last week seemed inadequate to stall the currency's fall.
Moreover, speculations that the US may roll back its economic stimulus package as early as next month and the weakness in global market had worsened the sentiment.
Market analysts stated that a lower opening in the equity market pulled down rupee to all-time low amid concerns over Fed's withdrawal of stimulus speculations which continued to put pressure on the Indian currency.
Meanwhile, the market also crashed by over 400 points before closing for the day 291 points down or 1.56 percent at 18,307.52. This is its worst closing since 18,242.56 on April 12.
The BSE sensex on Friday had crashed by 769 points, the lowest in 4 years.
Similarly, the NSE nifty 93.10 points or 1.69 percent to close at 5,414.75.