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Rupee Hits Record Low, Plunges 30 Paise to Hit 68.86

Press Trust Of India

Updated: November 24, 2016, 2:42 PM IST
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Rupee Hits Record Low, Plunges 30 Paise to Hit 68.86
Representative photo (Reuters)

Mumbai: The rupee crashed to a record low of 68.86 against the American dollar, plunging 30 paise on Thursday amid sustained foreign fund outflows and the greenback's surge in overseas markets.

The Indian currency had earlier hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013.

ALSO READ: Weakening Rupee, Its Causes, Implications for Equities

Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar's bull run on an imminent hike in Fed's interest rates, mainly weighed on the domestic currency.

Further, a lower opening of the domestic equity market also put pressure on the rupee, they said.

ALSO READ: RBI Intervenes

The rupee had shed 31 paise to close at a new nine-month low of 68.56 against the dollar on Wednesday.

The Indian currency shrunk 2.92 per cent since Donald Trump's victory in the US Presidential polls earlier this month.

A huge outflow of capital by foreign investors has been weakening the rupee as they apprehend an impact on the economy in the short-term following the India's move to demonetise Rs 500 and Rs 1,000 banknotes. Surging US bond yields and a strong dollar overseas are also contributing to the rupee's fall.

Meanwhile, the BSE Sensex fell by 145.97 points, or 0.56 per cent, to 25,905.84 points in early trade.

First Published: November 24, 2016, 9:53 AM IST
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