Rupee down 55 paise vs US dollar, biggest one day fall this year
On a day when Congress leader and scion of Nehru-Gandhi family came up with a forceful performance in the Lok Sabha and attacked Prime Minister Narendra Modi and his governmentâ€™s anti-people policies, the tumbling rupee added to the governmentâ€™s woes.
There is no denying the fact that Prime Minister Modi is facing a string of attacks not just from opposition, even his party is admitting that there are serious issues.
The rupeeâ€™s steepest fall of the month couldnâ€™t have come at a worse time. Logging its biggest fall of the year, the rupee on Monday plunged by 55 paise to close at over one-month low of 62.91 against the greenback amid sustained demand for dollars from importers. Meanwhile, the benchmark BSE Sensex stumbled by 555.89 points or 1.95 pct to end at three-week low of 27,886.21.
Reports suggest that the dollar shortcoverings by exporters on the back of firm American unit overseas amid heavy capital outflows also kept the rupee under pressure, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced weak at 62.54 a dollar from last close of 62.36, but initially tried to recover to a high of 62.47.
At one point it seemed that the rupee was headed to below 64 against dollar. Later, it met with strong resistance and tumbled to a low of 62.93 before settling at 62.91, showing sharp loss of 55 paise — biggest fall at 0.88% in absolute term in 2015. It had concluded at 62.97 on March 13. The dollar index, a gauge of six other major rivals, was up by 0.40% following China’s latest stimulus injection to spur growth.