Rupee Falls To Record Low Of 74.45 Per Dollar

The Indian rupee on Thursday depreciated by 24 paise to touch a fresh low of 74.45 against the U.S. dollar on strong demand for the American currency from importers.

The domestic unit opened weak at 74.37 against the greenback, compared with its previous close of 74.21. Sovereign bonds also edged higher ahead of the Reserve Bank of India’s open market operations.

This comes amid sharp losses in global equity markets, including India. The country’s benchmark Sensex wiped out its entire gains of 2018, falling 2.9 percent or 1,008 points, to 33,753, and the NSE Nifty 50 Index dropped 3 percent, or 316 points, to 10,144.

The rupee has fallen 14.14 percent this year so far, making it the worst performer among major Asian currencies, after a widening current account deficit left the local unit vulnerable to rising oil prices, trade tensions and rising interest rates in the U.S.

Concerns over rising fiscal deficit and capital outflows, too, weighed on the domestic currency, foreign exchange dealers told PTI.

On Wednesday, the rupee had snapped its six-session losing streak to end 18 paise higher at 74.21 after the American currency weakened overseas. Foreign institutional investors sold shares net worth a net of Rs 1,096 crore Wednesday, provisional data showed.

(With inputs from PTI)