Rupee sinks to a new record low of 70.81

Mumbai: The Indian rupee plunged to a fresh record low of 70.81 to a US dollar during the morning trade session on Thursday. Around 10.00 am the Indian rupee was pegged at 70.68 after it touched 70.81 to a US dollar — the lowest ever mark — against the greenback.

It opened the day’s trade at the Interbank foreign exchange market at 70.58 to a US dollar and soon surpassed its record low of 70.65 to a greenback on Wednesday.

According to analysts, continuous outflow of foreign funds, along with caution ahead of key macro-economic data, coupled with volatile global crude oil prices pulled the Indian rupee to a fresh low.

“Importers month-end US dollar demand and high crude oil prices have pulled the rupee lower,” said Anand Rathi Shares and Stock Brokers research analyst Rushabh Maru.

The government on Wednesday had said it was expected to remain in the range of 68 to 70 during the year.

Earlier, after hitting an all-time low 70.65 per dollar, the rupee settled at 70.59 per dollar, depreciating by 49 paise from its previous close of 70.10 per dollar.

Economic Affairs Secretary Subhash Chandra Garg told the media that the depreciation in the rupee was due to some small mismatch in the demand and supply, which may go either way depending on the view taken by the operators.