Rupee crashes 52 paise against dollar

Lowest rate since February 22, 2017

The rupee on Wednesday slumped 52 paise to hit a 14-month low of 66.90 against the dollar, the third biggest single-day fall for the domestic currency this year, amid surging crude prices coupled with headwinds on the macro-economic front in form of widening trade deficit. This was the lowest closing for the rupee since February 22, 2017.

After a brief overnight recovery, the domestic unit tumbled following panic dollar buying by corporates and importers.

Even, suspected RBI intervention did little to save the rupee from plunging in the mid-afternoon trade but managed to prevent it from touching the psychological 67 level.

In free fall

The domestic currency has been caught in a free fall for last few sessions against the backdrop of surging global oil prices and consistent widening of trade deficit.

Besides, a massive exodus of capital outflows from both equity and debt market against the grim backdrop of the U.S. Federal Reserve’s anticipated interest rate policy is just triggering panic, a forex dealer said.

The rupee has been the worst performing Asian currency this year after strengthening more than 6% in 2017.