Zee Media Bureau
New Delhi: The rupee on Wednesday plunged further by 131 paise to hit a fresh record low of 64.51 against the US dollar in afternoon trade on the Interbank Foreign Exchange on strong demand for the American currency from banks and importers.'Why has govt failed to arrest rupee's free fall?'
Forex dealers said besides strong demand for the American currency from importers and banks, dollar's strength against other currencies overseas amid expectation that the Federal Reserve will soon taper its bond-buying programme weighed on the domestic currency.
They said several measures announced by the government and the RBI failed to check volatility in the rupee.
Weak domestic fundamentals such as record current account deficit concern too put pressure on the rupee, they said.
The rupee closed at 63.25 after touching historic low of 64.13 against the dollar in the previous session.
In order to arrest the rupee slide, RBI last week had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering talks of return of capital control regime.
With Agency Inputs
First Published: Wednesday, August 21, 2013, 09:10