The Indian currency fell down to a 10% loss on Thursday. The rupee fell down to Rs. 71 against the dollar by 26 paise.
At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at Rs. 70.95 a dollar and slipped further to hit its lifetime low of Rs. 71 from its previous close of Rs. 70.74.
The rupee continued its downfall journey against the dollar by 15 paise to 20 paise. Fresh records say it declined to a range of Rs. 71 and is finally 26 paise downfall making it the worst performing currency in Asia.
Asian interest rates strategist, Vivek Rajpal said, “One big reason why rupee is behaving in this fashion is due to its sensitivity to oil prices which is very high. The market is generally differentiating between the current account deficit and current account surplus nations. In a way, the rupee is suffering due to current account deficit and its price sensitivity to oil prices.”
Forex dealers explained that the month-end demand from oil importers for the U. S., currency on the dollar’s strength with the high expectancy of increased interest rates and presence of the Sino U. S., trade tensions is the reason for the weight on the domestic currency.
According to the sources, Bombay Stock Exchange (BSE) Sensex fell 78.64 points, or 0.20 per cent, to 38,611.46 points in the opening trade.
