Rupee Dwindles To Historic Low Of 73.82 Against Dollar
Mumbai: The Indian Rupee on Thursday crashed to an all time low of 73.82 against dollar. The domestic currency dropped by 44 paise against the American currency in the morning session amid rising global oil prices and concerns regarding the current account deficit (CAD) and capital outflows.
According to analysts, the consistent rise in crude oil prices, increasing demand for dollar, hike in interest rate by Federal Reserve, sustained tensions in global trade and the widening current account deficit are weighing down heavily on the Indian currency.
The fresh fall in Rupee comes after the RBI’s announcement on Wednesday that it will allow state oil marketing firms to raise $10 billion in overseas loans to help them deal with a sharp rise in crude oil prices and a falling value of rupee.
The RBI also stated that it plans to invest Rs. 36,000 crore into the financial system in October this year. However, Weakness in domestic stocks and bonds is likely to continue.
Following the downward slip of Rupee, Sensex and Nifty saw a sharp fall on Thursday. Sensex was trading 537.65 points, or 1.49 per cent, lower at 35,437.98 while the Nifty 50 was down 155.75 points or 1.43% at 10,702.50.