Rupee hits all-time low, breaches 71-mark for the first time
The rupee slumped to a fresh record low of 71 against the US dollar for the first time ever, amid persistent demand for the US currency and rising crude prices. At Interbank Foreign Exchange (Forex) market, the local currency opened at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74. Here's more.
Why Indian rupee is plummeting?
According to experts, besides robust month-end demand for American currency from oil importers, dollar's strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency. Growing fears about rising inflation, amid high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also led to the plummeting of rupee.
Meanwhile, BSE Sensex fell 78.64 points
Yesterday, the rupee had slid by 15 paise to close at 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears. Benchmark Brent crude oil was at $78 a barrel in early Asian trade. Meanwhile, the BSE Sensex fell 78.64 points to 38,611.46 in opening trade.
