MUMBAI: The Indian rupee on Monday hit its lifetime low of 52.84/85 against the dollar
as demand for the US currency soared amid signs of FIIs pulling out
money in the wake negative growth in industrial production in October. Forex
dealers said a slew of measures like plunging stock markets, dollar
gaining strength against its rivals in the overseas market weighed
against the local currency which lost a whopping 81 paise against the
Greenback on Monday.
"As FIIs pulled out from markets due to weak IIP numbers, the rupee has seen such a big fall. Also, a weakening euro has added to the pressure," head of treasury operation of IDBI Bank, N S Venkatesh said. Analysts said existing economic woes were compounded by decline in industrial output which dent the confidence of investors.
At the forex market, the rupee opened lower at 52.09/10 a dollar and dropped further to finish at all-time record low at 52.84/85, down 81 paise, or 1.56% from its previous close. Venkatesh said said buying pressure from importers for their unhedged exposure also supported Monday's trend.
"As FIIs pulled out from markets due to weak IIP numbers, the rupee has seen such a big fall. Also, a weakening euro has added to the pressure," head of treasury operation of IDBI Bank, N S Venkatesh said. Analysts said existing economic woes were compounded by decline in industrial output which dent the confidence of investors.
At the forex market, the rupee opened lower at 52.09/10 a dollar and dropped further to finish at all-time record low at 52.84/85, down 81 paise, or 1.56% from its previous close. Venkatesh said said buying pressure from importers for their unhedged exposure also supported Monday's trend.
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