The rupee fell way past the psychological mark of 57 for the first time to 57.30 against the dollar on Friday on strong demand for the American currency from oil importers, increased capital outflows and concerns over slowdown in global economic growth.
Continuing its free fall, the rupee surpassed previous records in the five-day-long losing streak and tumbled Re 1, over 1.6 per cent from previous close to 57.30 per dollar in mid-session trade on the forex markets.
The rupee has depreciated nearly 3 per cent so far this week, its biggest weekly fall since September 23.
The dollar has also gained against the euro and other major currencies in the overseas forex markets amid global economic growth concerns, Moody’s downgrade of world’s 15 biggest banks and mounting worries over eurozone debt crisis, including the size of a bailout needed to save Spain’s banks.
The Reserve Bank of India also decided to keep all key interest rate unchanged, dampening industry as well as investor mood, adding to the pressure on the rupee.
After opening lower at Rs 56.80 against the dollar on Friday, the rupee recovered partially to 56.76 before slipping again.
It had gained from its low levels on Thursday to close at 56.30. Forex dealers said intervention by RBI and heavy selling of dollar failed to check the rupee’s free fall.
Keywords: INR-USD rate