Rupee ends at record low of 73.34 against dollar

Rupee breached 73 mark against the dollar for the first time ever in opening deals today.

New Delhi: The Indian Rupee closed at lifetime low of 73.34 against dollar on Wednesday as against Monday's close of 72.91.

Markets were closed on Tuesday on account of Gandhi Jayanti.

Rupee breached 73 mark against the dollar for the first time ever in opening deals as amidst sharp rise in global crude oil prices resulting in strong demand for the American currency. The partially convertible rupee dropped 43 paise to hit 73.34 per dollar in early trade and it touched 73.41 intra-day.

Meanwhile, the BSE 30-share barometer plummeted below the 36,000-mark to hit a low of 35,911.82, finally settling 550.51 points, or 1.51 per cent, down at 35,975.63. The NSE Nifty, too, stayed in the negative terrain through the session and hit a low of 10,843.75, finally ending 150.05 points, or 1.36 per cent, lower at 10,858.25.

The five-pronged strategy announced by the government to increase capital inflow into the country is unlikely to reverse the rupee depreciation, Moody's Investors Service had said last month.

Moody's, however, said that strong macroeconomic fundamentals will keep the credit risks of a weaker currency at bay.

The measures announced by the government on September 14 included removal of single-exposure limit of 20 percent on foreign portfolio investors for corporate bonds, lowering to one year from three years the minimum maturity on manufacturing firms' external commercial borrowings (ECBs) of up to USD 50 million.

With Agency Inputs