The rupee on Thursday plunged by a whopping 130 paise to hit life-time low of 60 against the US dollar in early trade on the Interbank Foreign Exchange on strong demand for the American currency from banks and importers. Later in the day, it trimmed initial losses but was still quoted lower by 83 paise to 59.53 per US dollar.
Besides, dollar’s strength against major currencies overseas on comments by Federal Reserve Chairman Ben Bernanke that the central bank may scale back its monetary stimulus programme later this year weighed on the domestic unit, dealers said.
They said weak domestic fundamentals such as record current account deficit and high inflation concerns too put pressure on the rupee.
The rupee had earlier hits its all-time intra-day low of Rs 58.98 on June 11.
The rupee had gained 7 paise to close at Rs 58.70 against the dollar in the previous session on the back of recovery in stocks and fresh dollar selling by exporters.
Meanwhile, the BSE benchmark Sensex dipped below 19,000 level by plunging 423.05 points, or 2.19 per cent, to 18,822.65 in early trade.