Rupee woes continue; hits fresh all-time low of 65.56 Vs dollar
The rupee on Thursday plunged further by 148 paise to hit a fresh record low of 65.56 against the US dollar in mid-session trade.
Zee Media Bureau/Ajeet Kumar
New Delhi: The rupee on Thursday plunged further by 148 paise to hit a fresh record low of 65.56 against the US dollar in mid-session trade on the Interbank Foreign Exchange on strong demand for the American currency from banks and importers.
The rupee had ended at 64.11 after hitting a fresh low of 64.54 against the US dollar in the previous session.
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.
Federal Reserve minutes yesterday also hinted that the United States may start tapering its stimulus as early as next month.
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.
The rupee is down 16 percent so far this year despite efforts by policymakers to prop it up.