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Wednesday, August 28, 2013

Rupee tumbles to new all-time low of 68.75 against dollar, sensex sinks over 500 points

Representational picture



The rupee resumed lower at 66.90 per dollar as against the last closing level of 
 66.24 per dollar at the Interbank Foreign Exchange (Forex) Market and
 dropped further to an all-time low of 68.75 per dollar at 1045 hrs.

The rupee plunges to a new record low of 68.75 per dollar in the late morning
trade on persistent dollar demand from banks and importers due to further fall
 in equity market amid rise in crude oil prices.
The rupee resumed lower at 66.90 per dollar as against the last closing level
of 66.24 per dollar at the Interbank Foreign Exchange (Forex) Market and
dropped further to an all-time low of 68.75 per dollar at 1045 hrs.
Stock markets also fell sharply, with the 50-share Nifty benchmark trading
below 5,150 levels having dropped around 170 points. The BSE Sensex
dropped over 500 points
Persistent capital outflows by foreign funds also affected the rupee value
 against the dollar, a forex dealer said. Foreign Institutional Investors (FIIs)
sold shares worth a net Rs 1,373.99 crore yesterday as per the provisional
data from stock exchanges.
Oil prices rose in Asian trade today on concerns over possible US military
action against Syria after Washington warned President Bashar al-Assad's
regime that it would face action over an alleged chemical weapons attack.
 New York's main contract, West Texas Intermediate (WTI) for delivery in
October, was up 57 cents to USD 106.49 in mid-morning trade.
Meanwhile, the benchmark Sensex tumbled by 457 pts or 2.54 % to 17,
510.89 at 1035 hrs
Continuing its free-fall, the rupee on Wednesday breached 68-mark against
the dollar by falling 176 paise to trade at a life-time low on strong demand
for the US currency amid rising concerns over fiscal burden after the passage
of the Food Bill.


At the Interbank Foreign Exchange (Forex) market, the local currency opened
lower at 67.06 a dollar from its previous close of 66.24 and breached 67-mark
to trade at a fresh low of 67.42, down by 118 paise, or almost 1.8 %.
Forex dealers said besides strong month-end demand for the American
currency from importers, concerns related to subsidy burden after the passage
of Food Security Bill and capital outflows mainly weighed on the domestic currency.
Further, rising crude prices in the global market also put pressure on the
rupee, they said.
The rupee had recorded a steep fall of 194 paise, or 3.02 % to close at
record low of 66.24 against the dollar in the previous session.
Meanwhile, the BSE Sensex fell further by 229.66 points, or 1.28 %, to 17,738.42
 points in early trade.
Global markets were also jittery after reports said that simmering tensions in
Syria may affect geopolitical balance.

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