Rupee tumbles for 7th day; below 72-mark for 1st time

Source: The Hitavada      Date: 07 Sep 2018 08:29:05



THE rupee’s woeful run continued for the seventh straight session on Thursday as worries on macroeconomic economic front and rout in emerging market currencies pulled the Indian unit below the historic 72-level for the first time ever.The domestic currency plunged to 72.11 to the dollar at one point during the day’s trade before closing at 71.99, showing a steep 24 paise fall.

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. Besides, escalation in global trade war tiff too weighed on sentiments. After a positive start in early trade, the beleaguered rupee crumbled to breach the 72-mark for the first time ever. It had opened higher by 13 paise at 71.62 per dollar.The Indian rupee continues to be the worst performer among Asian currencies, having weakened by almost 13 per cent since the beginning of the year.

The Indian unit opened higher at 71.62 against the last close of 71.75 at the interbank foreign exchange (forex) market on bouts of dollar selling by State-run banks. But, it immediately retreated to break multiple days of a record low. The local unit hit a fresh intra-day low of 72.11 in mid-afternoon deals, before ending the day at 71.99. The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 71.9214 and for the euro at 83.6005.