The rupee closed at a record low against the dollar on Tuesday, declining 47 paise to close the day at 72.98 a dollar due to rising global crude oil prices. Benchmark Brent crude futures rose $1.14 a barrel to $79.19 during the day, after hitting a high of $79.37 in early Asian trade.
Since Monday, the rupee has plunged by 114 paise, or more than 1.5%, as trade war concerns resurfaced and crude oil rebounded. The rupee declined in the last two trading sessions even after the government announced steps last week to address the widening CAD. Soumya Kanti Ghosh, group chief economic adviser, SBI, said that the RBI should sell dollars from its reserves to arrest the fall. “RBI could sell at least an additional $25 billion from its reserves to support the rupee, based on our historical analysis of RBI intervention patterns since 1990s,” he said.
(With PTI inputs)