New Delhi: The Indian Rupee fell down to 72.88 versus the US dollar on Wedensday and dived to a fresh record-low following the Sensex crashed over 400 points. In early trade on Wednesday amid renewed worldwide trade conflicts and worries earlier, the Indian currency opened 5 paise down at 72.75 against the American currency.
Foreign institutions strengthened selling of domestic stocks on Tuesday, pulling out Rs 1,454 crore which is their highest daily loss in over three months as money moved from not safe emerging markets to secure worthy assets like the dollar.
Tarun Satsangi, Head-Commodity and Forex Research at Globe Capital Market stated that now sharp fall in the rupee is a big concern and it raised the worries about inflation, interest rate hikes and foreign portfolio outflows.
Worth mention here The Indian rupee has fallen by more than 5 percent in the last month .This historic depreciation of 12 percent, made Indian rupee one of Asia’s worst performing currencies.
Rupee was depreciated by rising global crude oil prices because India imports nearly 80 per cent of its fuel needs and a current-account saw a five-year high shortfall.