The Indian rupee opened at a fresh record low on Wednesday trading just 10 paise short of the 73 mark against the US dollar. The factors impacting the fall of the rupee are advances in international crude oil prices and losses in emerging currencies market.
At 9.15 am, the rupee was trading at 72.89 a dollar, down 0.25% from its Tuesday’s close of 72.69 per dollar after RBI intervention. On the Monday it ended at 72.45 per dollar. Though the currency recovered a little by Wednesday afternoon to trade around 72.81,
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“It thus appears that the global factors have had a more important role to play for the depreciation of the rupee rather than the domestic factors like widening current account deficit, foreign investment outflows, rising inflation due to elevated crude oil prices”, said Care Ratings in a note to its investors.
Traders are also cautious ahead of key retail inflation and index of industrial production data due to be released after 5.30pm today. According to Bloomberg estimates, IIP will be at 6.5% for July from 7% a month ago. Retail inflation may come at 3.78% in August from 4.17% in July.
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So far this year, the rupee has weakened 12.3%, while foreign investors have sold $538.20 million and $6.38 billion in equity and debt markets, respectively.
Benchmark Sensex Index rose 0.35% or 131.36 points to 37,544.49. Since January, it has gained 9.86%.