Rupee breaches 64-mark against dollar: Will it breach 67?
Indian stock market crashed to its lowest this year. Billions of dollars of investorsâ€™ money went down the drain. Now there is another big worry staring them in the face. Indian Rupee is going down and down and further down.
Indian Rupee seems to be facing the worst days in the last several months. It has been going down without a pause for the last four days and on Wednesday it went down by another 10 paise to close at one-week low of 63.54 against the US dollar following distinctly weak trend in local equities amid sustained capital outflows.
Experts are predictably worried. Forex dealers said continued dollar demand from importers, mainly oil refiners, on the back of smart surge in brent crude oil prices too weighed on the rupee but a sharp fall in the Greenback overseas capped the rupee’s losses. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced higher at 63.34 per dollar from its previous close of 63.44 and immediately touched a high of 63.30. Later, it tumbled in line with local stocks to a low of 63.65 before concluding at 63.54, showing a fall of ten paise or 0.16%.
On the other hand the benchmark S&P BSE Sensex today crashed by 722.77 points — the second biggest fall in the current calender year after January 6, 2015 when it had plunged by 854.86 points or 3.07% — to end below the 27,000-mark while foreign portfolio investors sold shares worth USD 70.68 million yesterday, as per Sebi data. In New York, the dollar suffered broad losses against its major rivals, following renewed pressure amid disappointing US trade data for March painting an even bleaker economic picture of the first quarter. The dollar index was down by 0.34% today against its six major global rivals.