Business Today
Rupee hits fresh lifetime low of 74.48 amid Sensex, Nifty crash
The US dollar index against which the rupee value is pegged hit its all-time high of 96.98 this month displaying strength of a recovering US economy.
Rupee hits fresh lifetime low of 74.48 amid Sensex, Nifty crash

The Indian rupee fell to a fresh all-time low in trade today following a crash in equity markets and rising demand for dollars by importers.

The currency opened lower by 10 paise at 74.30 per dollar compared to previous close of 74.21 in yesterday's trade.  It fell to all-time low of 74.48 level to the dollar, down 27 paise to the dollar.

The rupee had gained 18 paise on Wednesday recovering from its all-time low of 74.39, registering its first rise after sixth straight sessions of losses.

The  Indian rupee has been falling since the beginning of this year on high crude oil prices, strengthening of the US dollar and unabated foreign fund outflows.

The currency has lost over 16% since the beginning of this year.

The US dollar index against which the rupee value is pegged hit its all-time high of 96.98 this month displaying strength of a recovering US economy.

Crude prices too crossed the $86 per barrel mark last month triggering a fall in home currency.

India is 81 per cent dependent on imports to meet its oil needs and is the third-largest importer of crude after US and China.

Since payment of crude oil prices is done in dollars, a higher crude rate leads to more amount of rupee being converted to dollar, thereby strengthening the US currency.

High current account deficit too has singed the home currency. CAD in the first quarter of this fiscal widened to $15.8 billion, which is around 2.4 per cent of the country's Gross Domestic Product (GDP), as compared with $15 billion in the corresponding quarter a year before.

In the January-March quarter, the trade shortfall stood at 1.9% of the GDP.

The global market crash hit market at home with the Sensex falling 1,000 points to 33,760 level in early trade. The Nifty too lost 2.85% or 297 points to 10,162 level.

(Edited by Aseem Thapliyal)

Get latest news & live updates on the go on your phone with our News App. Download The Business Today news app on your device
More from BIZ WRAP