Indian rupee breaches 72 to dollar for the first time

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Indian rupee breaches 72 to dollar for the first time

Mumbai - The rupee has fallen nearly 2 per cent this month and more than 12 per cent this year.

By Reuters/PTI

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Published: Thu 6 Sep 2018, 9:27 AM

Last updated: Thu 6 Sep 2018, 6:55 PM

The Indian rupee breached the crucial 72 to the dollar mark on Thursday, extending losses as a rout in emerging markets kept investors on edge.

The rupee fell to a record low of 72.11 to the dollar at one point, with strong bids for dollars coming after 70 was hit, traders said.
Against the UAE dirham, the rupee was trading at 19.62 at 11:30am (UAE time), according to XE.com.

The Reserve Bank of India was not spotted intervening after the rupee pierced the 72 level, two dealers said. It had been suspected of selling dollars earlier in the day.
"There is a panic now, especially among those who are unhedged," said a forex official at a state-run bank.
The rupee has fallen nearly 2 percent this month and more than 12 percent this year.
According to analysts, the fall in the rupee is due to the Sino-US trade tensions along with high crude oil prices and outflow of foreign funds.??
Finance Minister Arun Jaitley on Wednesday said external factors have caused the depreciation of the rupee.?
The rupee continued to be ruled by speculation, pressured by crisis in emerging market currencies, escalating trade war tensions and rising crude," another dealer said.

Overseas, the US dollar fell against a basket of currencies in early Asian trade, as the pound led a bounce in European currencies; although skittish emerging market currencies and global trade concerns limited the greenback's losses.

Meanwhile, the 30-share BSE Sensex is trading higher by 168.58 points, or 0.44 per cent, at 38,186.89 at 1105 hrs.


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