Rupee drops: 53.40 per dollar
MUMBAI: On Tuesday the Indian rupee lowers down by 56 paise to a historic low of Rs 53.40 per US dollar.
Source said this happend due to persistent demand for the American currency from banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets.
The rupee resumed lower at Rs 53.10/11 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 52.84/85 per dollar, and dropped further to an all-time low of Rs 53.40 per dollar before quoting at Rs 53.27/28 per dollar at 10.30 hours.
Sustained dollar demand from banks and importers in view of a stronger dollar in overseas markets and foreign capital outflows affected the rupee value against the dollar, a forex dealer said.
On Monday the US dollar gained against major currency rivals in the New York market, while the euro fell to its lowest level in two weeks amid renewed concerns that European leaders aren’t doing enough to contain the region’s sovereign debt crisis.
At the same tme, the BSE benchmark Sensex was down by 12 points, or 0.07%, in early trade.
It is now on Reserve Bank of India (RBI), whether it will intervene again in arresting the rupee’s decline like it did in the month of September and October.
According to data available with the RBI, the central bank had sold $845 million and $943 million in September and October respectively to support the currency and did not buy any dollars in both months.
(News Editor- Naushin Fatima Khan)
Contents from- PTI, IANS, HT
