Rupee Plunges To Lifetime Low Of 72.73 Against US Dollar
New Delhi: The Indian Rupee hit a record lifetime low of 72.73 against the US Dollar in late afternoon trade on Wednesday. The domestic currency dropped by 28 paise against dollar, after a gain of 15 paise amid rising global fuel prices and volatile trading trends.
Market analysts have said that excessive outflow of foreign funds and sharp decline in domestic equities were responsible for the depreciation in rupee. Furthermore, crude oil prices crossed the 78 per barrel mark.
Notably, the Indian rupee has been the worst performing Asian currency after being devalued by 13 per cent against the dollar since January this year. As per reports, the Ministry of Finance and the RBI are closely monitoring the position of rupee and taking necessary steps to prevent its devaluation.
Moody’s Investor’s Service has stated that the drastic fall of the domestic currency is credit negative for domestic companies, especially for those that generate revenue in rupees but have dollar-based expenses and depend on dollar debt to fund their operation.
On Monday, the rupee ended at an all-time closing low of 72.45 against the greenback. The S&P BSE Sensex also plunged by 509 points at 37,413.13 while the Nifty settled at 11,287.50, down by 150.60 points.