PTI
Mumbai, October 19
The rupee plunged by 60 paise to record low levels of 83 for the first time against the US dollar on Wednesday amid unabated foreign capital outflows and a strong dollar in the overseas markets.
Besides, rising crude prices in the international markets and risk-averse sentiment among investors weighed on the local currency, traders said.
Closes at Historic low
- The domestic unit plunged 6O paise to dip below the 83-mark for the first time against the US dollar
- Rising crude prices in the international markets and risk-averse sentiment among investors weighed on the local unit
- At the forex market, the rupee opened at 82.32 but later pared gains to settle at an all-time low of 83 against the American currency
The rupee had moved in a narrow range in the past three sessions on dollar selling by PSU lenders possibly on behalf of the RBI for curbing volatility and the US dollar index hovering near 112 level.
However, the dollar index breached the 112.55 level on Wednesday while US Treasury yields surged to a 14-year high, triggering a panic selling in the rupee, according to traders.
Major global currencies also took a hit with the greenback hitting a 32-year high against the Japanese yen and approaching the historic level of 150. The Euro declined 0.8 per cent while the British pound fell by 0.6 per cent against the US dollar on Wednesday. At the interbank foreign exchange market, the local currency opened strong at 82.32 but later pared gains to hit an all-time trading low of 83.01 against the American currency.
The rupee finally settled at a record low of 83.00, showing net loss of 60 paise — its sharpest single day loss since September 22.
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