NewDelhi: The rupee opened at fresh record low on Monday. The rupee endured its free fall for the second straight week last week as nagging concerns over rising crude oil prices and trade war tensions continued to hurt forex market sentiment.
At 11.06 am, the Indian currency was trading low by 99 paise to 72.44 against the US dollar.
It crashed below the 72-level for the first time ever to hit a historic low of 72.11 before closing at 71.73, showing a steep loss of 73 paise.
The Reserve Bank of India intervened heavily in the forex market on Friday, mounting a formidable defence of the 72 rupee to the dollar mark in a reversal of its light-handed approach in the last few weeks.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit amid escalation in global trade war tiff.
India’s current account deficit (CAD) has been deteriorating since the last fiscal.
The domestic unit continues to be worst performer among Asian currencies, having weakened by almost 13 per cent since the beginning of the year. It also took a severe beating against the British pound, euro and Japanse yen.
Indias economy grew at a delightful 8.2 per cent in the April to June quarter of this year after the twin shocks of a cash ban in 2016 and the chaotic introduction the new goods and services tax (GST)last year, reclaiming its position as the fastest growing major global economy this year.
Bureau Report
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