Rupee Falls Further, Hits Lifetime Low of 74.39 Against US Dollar
On Tuesday, the rupee continued its fall and recorded closer to 74.39 against dollar. The fall in Indian currency is due to the rise of crude oil price which crossed $84 mark today and a strong US currency demand.
On Monday, the rupee for the first time crossed the 74-mark to close at 74.06. Today, at the forex market, the domestic unit opened higher at 73.93 and advanced to 73.88 on fresh selling by exporters amid weakness in dollar against some currencies overseas. But all the morning gains were erased at the afternoon trades and traders said that the foreign funds outflows weighed on the rupee.
Investors just remained concerned over the crude oil price and sustained foreign capital outflows. Apart from the unwavering demand for the dollar from importers, concerns rising fiscal deficit and capital outflows weighed on the domestic currency.
Meanwhile, the BSE benchmark sensex dropped by 175 points, or 0.51 per cent, to close at 34,299 and the broader NSE Nifty also completed in Red at 10,301.