The Indian rupee, which has witnessed steep decline in its value, plunged nearly four percent to a new record low of 68.75 per dollar on Wednesday.
New Delhi, Aug 28/Nationalturk -The Indian rupee plunged nearly four percent to a new record low of 68.75 per dollar on Wednesday.
The rupee resumed lower at 66.90 per dollar as against the last closing level of 66.24 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to an all-time low of 68.75 per dollar.
Experts said persistent capital outflows by foreign funds also affected the rupee value against the dollar. “The rupee plunged further due to rise in crude oil prices and fall in equity market”.
They said the consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.
“The Foreign Institutional Investors (FIIs) sold shares worth a net Rs 1,373.99 crore yesterday as per the provisional data from stock exchanges,” they said.
According to interbank foreign exchange market, the rupee opened at 66.90 a dollar against 66.24 previously and dropped to 68.75 in late morning deals. It recovered some ground in the afternoon after the central bank was said to have intervened but dropped to an all-time intra-day low of 68.85 before ending at 68.80, a fall of 256 paise or 3.86 percent.
For three consecutive days, the rupee has lost 8.86 percent against the dollar. In August so far, the rupee has lost 14 percent, and in the current year by over 25 percent.
India losing confidence of world: Industrialist
The business tycoon of India and leading Indian industrialist Ratan Tata while reacting to continuous fall in value of India currency has said India has lost the confidence of the world.
“The India government has been slow to recognise it. The government has swayed under the influence of vested interests in private sector and policies have been changed, delayed and manipulated,” Tata told an Indian news channel.
Referring to 1991 reforms, when the brave financial moves were made in India, he said, “It it’s the same team. What has happened in my view is that there have been forces. By and large whatever is happening should be looked at to the benefit of the people of India not too few vested interests in India”.
Tata said India lacks leadership, which could lead from the front. “We don’t have leadership that we have been talking about, that should have been leading from the front”.
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Faiz Ahmad / NationalTurk India News
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