Rupee continues freefall, hits new record low of 72.67 against the dollar

The rupee hit a new record low of 72.67 against the dollar on Monday.

The rupee opened at a record low of 72.15 against the dollar, then slipped quickly to 72.30. The rupee had closed Friday at 71.73 when the central bank had intervened heavily to prevent it from slipping below 72 to the dollar.

The rupee has been sliding against the US dollar in recent days as emerging markets come under pressure. That hasmade the currency one of Asia’s worst performers, losing 12% this year.

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The Reserve Bank of India intervened heavily in the forex market on Friday, mounting a formidable defence of the 72 rupees to the dollar mark in a reversal of its light-handed approach in the last few weeks.

The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit amid an escalation in global trade war tiff.

India's current account deficit (CAD) has been deteriorating since the last fiscal.

The domestic unit continues to be the worst performer among Asian currencies, has weakened by almost 13 per cent since the beginning of the year. It also took a severe beating against the British pound, euro and Japanse yen.

India's economy grew at a delightful 8.2 per cent in the April to June quarter of this year after the twin shocks of a cash ban in 2016 and the chaotic introduction the new goods and services tax (GST)last year, reclaiming its position as the fastest growing major global economy this year.

(With inputs from PTI)