Rupee sunk to all-time low again: 74 mark against US dollar breached
The Indian currency has not halted its fall since the last few months. It has continued to fall. Now, it has hit a new record low. It has breached the 74- mark against the US dollar. The Indian currency, rupee sunk to a new low of 74.23 after the Reserve Bank of India (RBI) kept key policy rates on hold.
However, the currency did not linger any lower than that value. It settled at 73.76 against the US dollar. It came down 18 paise against its previous close of 73.58.
A surprise move was played the Reserve Bank of India. They kept their lending rates unchanged. The central bank of the country maintained a status quo. They kept the repo rate unchanged at 6.50 per cent. The reverse repo rate also remained the same at 6.25 per cent.
After the policy meet, RBI governor Urjit Patel addressed the media. He said that the rupee fall is moderate in comparison to emerging market peers.
In the year 2018 itself, the value of the rupee sunk 13.5 per cent. This has made the rupee Asia’s worst performing currency. There has been a global rise in oil prices and a sell-off in emerging markets. This has led to a slump in rupee in the recent months.
Investors are concerned over the sustained foreign capital outflows. There are rising fears of widening current account deficit (CAD) in the wake of rising crude oil prices.
The rupee has recently recovered in the early trade. It has gone up 6 paise and is now standing at 73.52 against the US currency.
Markets crashed nearly 800 points when the value of the rupee sunk. The benchmark BSE Sensex closed 792 point lower at 34377 and broader NSE Nifty finished 283 points down. The condition of the rupee is looking bleak. The US currency strength is continuously increasing.
