The Indian rupee hit a fresh record low of 72.10 per dollar and breached the key level of 72 per US dollar. Its morning gains were erased and it slipped 35 paise (or 0.46 percent) from the previous close of 71.75.
It had opened higher by 13 paise at 71.62 per dollar .
The Finance Ministry said the fall in rupee was due to global factors and said there was no need for panic or knee-jerk reactions. He further said the RBI is doing whatever is necessary to deal with the situation, according to IFA Global report.
Yesterday, the rupee fell to a record low of 71.96 per dollar before it finished the day at 71.75, down 19 paise from the Tuesday’s closing of 71.56.
The rupee has continuously plunging down for the last six days. It lose 165 paise in the previous trading sessions.
We believe the Indian rupee will find some resistance around the 72-levels against the US dollar, said Rajeev Srivastava of Reliance Securities.
According to Motilal Oswal report, “Rupee fell to fresh record low levels primarily on back of surge in global crude oil prices and on expectation that higher crude oil prices will start hurting India’s import bill. Major Asian as well as emerging market currencies remains under pressure and that also is weighing on the rupee.”
“Worsening global trading conditions against the back drop of escalating trade wars and rising global oil prices largely caused panic among most market participants. Today, USD-INR pair is expected to quote in the range of 71.20 and 71.90-72.05,” it added.