Rupee hits all-time low of 73.34 against US dollar

Rupee hit 73.34 per dollar in early trade, on all-time low, and sharply lower than its previous close of 72.91

CHENNAI:  The rupee dropped to a record low in opening deals today as a sharp rise in global crude oil prices over the last two sessions weighed on sentiment. It opened lower at 73.6 and weakened further to quote at 73.4 a dollar against its previous closing of 72.91 on Monday.

The benchmark 10 year bond yield was up 6 basis points at 8.05 per cent.

                                                                                                               (Image Source: DNA India)

Forex dealers said that besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the domestic currency.

Oil prices firmed on expectations of a tighter market once US sanctions start targeting Iran’s petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains. Prices however remain at highest levels since November 2014.

 

The rupee has been setting one record low after another recently, with overseas investors having pulled a new $9.1 billion from Indian stocks and bonds this year amid an emerging-market selloff.