Rupee Touches 72 Mark Against Dollar, Gold Surges By Rs 200
New Delhi: The Indian Rupee on Thursday breached the 72 mark against US Dollar. This comes after the domestic currency hit a low of 71.97 on Wednesday, before finishing at a closing low of 71.75.
The Indian currency was quoted 37 paise lower at 72.12 against the US dollar in afternoon trade today. Earlier in the day, the currency had appreciated by 9 paise to 71.66 against the US dollar on fresh selling of the US currency by exporters and banks.
The sustained foreign capital outflows and widening current account deficit in the wake of rising crude oil prices has alarmed the investors. Forex dealers said besides strong demand for the American currency from importers, fears of rising fiscal deficit and capital outflows have been weighing down on the rupee.
Finance minister Arun Jaitley on Wednesday said the fall in rupee is due to global factors and emphasised that the domestic currency was better off compared to other foreign currencies.
On the other hand, Gold prices surged by Rs. 200 to Rs. 31,400 per 10 gram at the Delhi bullion market. However, Silver depreciated by Rs. 250 to Rs. 37,600 per kg due to a decline in demand by industrial units and coin makers. Market analysts said gold prices are surging due to the falling value of Rupee and increased buying by local jewellers to meet the festive season demand.