Your rupee is worth even less today! Value plunges to historic low

The Indian rupee today slumped to a fresh record low of 72.18, falling 45 paise against the US dollar, while opening at record low of 72.15 a dollar from its previous close of 71.73 at the Interbank Foreign Exchange (Forex) market. The domestic currency breached its previous record low of 72.11 hit on September 6.

Rupee value has fallen to a new historic low today. From the common man to the investors, the plunging trend of the Indian rupee has everyone worried. Image source: Reuters

Rupee value has fallen to a new historic low today. From the common man to the investors, the plunging trend of the Indian rupee has everyone worried. The Indian rupee today slumped to a fresh record low of 72.18, falling 45 paise against the US dollar, while opening at record low of 72.15 a dollar from its previous close of 71.73 at the Interbank Foreign Exchange (Forex) market. The domestic currency breached its previous record low of 72.11 hit on September 6.

Rupee's continuous decline is on strong demand for the US currency from importers as the greenback strengthened against other currencies overseas on upbeat jobs data.

PTI report quoted forex dealers as saying that besides strong demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.

Further, they reportedly said that the dollar strength against its rival currencies overseas amid fears of a possible escalation in the US-China trade conflict too put pressure on the rupee.

Meanwhile, India's 10-year bond yield rose to its highest since late-2014 on Monday as worries of higher crude prices and weakening rupee bolstered inflation concerns, said a Reuters, adding the 10-year benchmark bond yield rose to 8.12 percent, its highest since November 28, 2014.

Dealers reportedly said the Reserve Bank of India (RBI) was mildly selling dollars in the forex market unlike on Friday. The 10-year paper ended at 8.03 percent on Friday and the rupee at 71.73 to the dollar.

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Meanwhile, the key equity indices opened in the negative territory today, tracking broadly negative cues in the global markets. The wider Nifty50 traded at 11,546.65 points at 9:35 am, lower by 42.45 points or 0.37 per cent from its previous close, while the S&P BSE Sensex, which had opened at 38,348.39 points, traded at 38,213.84 points, lower by 175.98 points or 0.46 per cent than the previous close of 38,389.82 points.

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