Rupee Slips To 68.20/Dollar, Nears Record Low

The rupee slipped for the third consecutive day, dropping 15 paise or 0.2 per cent to fresh 29-month low of 68.20 per dollar. It had closed at 68.05 on Wednesday, marking its second-worst closing low.

Sustained selling by foreign investors has led to nearly 3 per cent depreciation in the rupee this year. In the first four weeks of 2016, foreign institutional investors have sold equities worth nearly Rs 11,000 crore, weighing down the currency.

Foreign investors are aggressively selling shares in stock markets because of the crash in crude oil prices and concerns about China’s growth. The steady decline in the rupee may have contributed to redemptions as a weak rupee dents the returns of foreign investors, traders say.

Month-end dollar demand from importers, such as oil marketing companies, is also weighing on the rupee, analysts say.

Analysts are confident that the Reserve Bank will defend the rupee and not let it fall past the record low of 68.85 hit in August 2013.

As of 10 a.m., the rupee traded at 68.13 per dollar, while the broader Sensex and Nifty were flat.

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Source:Ndtv

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