The rupee touched a low of 57 a dollar intra-day on Thursday on strong dollar demand from corporates. However, it closed at 56.84/85 a dollar as compared to its previous close of 56.72/73. It hit its historic low of 57.32 against the dollar late in June 2012.
Persistent worries of high gold imports precipitated the fall. Rebound in global crude oil prices have again led to a worsening situation of
current account deficit (CAD).
The RBI also said that CAD situation was under stress, and steps to address it need urgent attention.
These created a bearish sentiment for rupee.
‘RBI will take steps to check volatility’
Attributing rupee fall to rising current account deficit (CAD), Reserve Bank of India (RBI) Deputy Governor K. C. Chakrabarty on Thursday said the central bank would be taking steps to check currently volatility. “The issue is that...if we have a CAD and fiscal deficit, rupee has to orderly depreciate and if it doesn’t depreciate orderly, sometime it would be depreciating in-orderly,” he said at a function here. Mr. Chakrabarty said “the central bank will do everything to see that volatility is minimised”