New Delhi: The rupee depreciated 18 paise to close at a record low of 79.03 (provisional) against the US dollar on Wednesday, weighed down by persistent foreign capital outflows, a strong dollar overseas and surge in crude oil prices.
PTI reported that the rupee breached the 79 per dollar level, provisionally. The report showed the currency depreciated 18 paise to a record low close of 79.03 per dollar, provisionally, weighed down by persistent foreign capital outflows driven by flight-to-safety bets.
Earlier in the session, the rupee opened weak at 78.86 against the greenback, then lost ground to end provisionally at 79.03- its all-time low level.
Bloomberg quoted the rupee’s intra-day low at 78.985 per dollar, within striking distance of the 79-to-a-dollar mark.
On Tuesday, the rupee had plunged by 48 paise to close at a record low of 78.85.
The currency has closed at a new record low in each of the previous six sessions, including its latest close on Wednesday.
The Reserve Bank of India has recently intervened in the markets to shore up the rupee.
News agency Reuters, quoting analysts and traders, reported that the RBI would need to change its strategy to ease the pressure on the rupee as the currency’s decline is being accelerated by its current intervention method in the futures market.
The rupee has hit a series of lifetime lows this month since breaching the 78-to-a-dollar rate and is within striking distance of 79, as concerns around growth, portfolio outflows, high global crude prices, and sustained inflation weigh.