Rupee crashes below 72-mark for the first time ever against US dollar

Team Udayavani, Sep 6, 2018, 3:14 PM IST

Mumbai: The Indian rupee on Thursday crashed below the 72-level for the first time ever on persistent global headwinds and concerns on the macroeconomic front.

The domestic currency was quoted 37 paise lower at 72.12 against the US dollar in afternoon trade. Investors remained concerned over sustained foreign capital outflows and widening current account deficit in the wake of soaring crude oil prices.

At the Interbank Foreign Exchange (Forex) market, the local currency opened higher at 71.67 a dollar against its previous record closing of 71.75, but failed to sustain initial strength and fell back to breach the 72-mark. The rupee’s unabated fall continued for the sixth straight session Wednesday, hitting yet another closing low of 71.75, down 17 paise against the US currency.

On Wednesday, the domestic unit plummeted to a historic low of 71.97 a dollar in intraday trade before finding some respite. Finance Minister Arun Jaitley Wednesday attributed the fall in rupee to global factors and stressed that the domestic unit was better off as compared to other currencies.

Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the domestic currency. Moreover, weakness in emerging currencies overseas against the dollar too weighed on the domestic currency, they added.

Meanwhile, international Brent crude futures fell 27 cents, or 0.4 per cent, to USD 77 per barrel. A fall in crude prices is seen as positive for India, which imports most of its oil requirements, traders said. The BSE Sensex too entered the negative zone by falling 61.11 points, or 0.16 per cent, to 37,957.20 points in afternoon trade.