The Indian Rupee continued to fall and hit an all time low of Rs. 72.91 against the U.S. dollar. On Tuesday morning, the domestic currency fell by 28 paise.
The major cause behind the frequent fall is quoted as trade war concerns, steady demands of the dollar from banks, importers and oil refineries in view of surging crude oil prices and capital outflows. The multiple falls of rupee this month makes it the worst performing Asian currency.
The Reserve Bank of India (RBI) is involved in the Foreign Exchange (FOREX) market. The involvement of the RBI resulted in the Foreign Exchange Reserves’s fall of 400 billion dollars is enough to recover eight months of imports. An official has said that the Reserve Bank of India is thinking of turning to the rich Indians abroad to raise the value of the Indian rupee.
According to sources, the current account shortfall hit the Indian rupee hard with a worse balance payment. The domestic currency was in serious debt in the month of April and June this year. There is a high possibility of the Indian currency freefalling this week.
The Indian currency has weakened around 12% this year and India’s benchmark set a fresh four year high of 8.18 %. The Bar Stock Exchange (BSE) lost 509.04 points to trade at 37,413,13.