Rupee hits fresh all-time low of 71.57 against US dollar
The dollar strengthened against some currencies overseas as investors bid up safe-haven assets amid tensions over global trade and strains in emerging market currencies.
The rupee's free fall continued unabated on Tuesday morning with the currency hitting a new all-time low of 71.57 against the US dollar.
A the Interbank Foreign Exchange, the local currency opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.57.
Analysts expect it to hit the 72 level per dollar if the strong demand for the greenback persists coupled with soaring oil prices.
The slump in the value of rupee comes amid strong demand for the American currency from importers. According to forex dealers, capital outflows too weighed down the domestic currency.
A weaker rupee has resulted in rise in import bills, costlier foreign education and travel. The biggest impact is on petrol and diesel prices which have witnessed a steady increase throughout the year.
The dollar strengthened against some currencies overseas as investors bid up safe-haven assets amid tensions over global trade and strains in emerging market currencies.
The rupee hasn't crashed as much as Turkish Lira or Argentine Peso did versus the greenback. These currencies depreciated over 70 per cent so far this year, while rupee shed 10 per cent, and is comparable to the currencies of Indonesia, South Africa and Brazil.
Yesterday, the rupee had lost 21 paise, to close at an all-time low of 71.21 against the US dollar.
(With inputs from PTI)