High crude oil prices dent rupee; touches record low

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Mumbai, Aug 29 (IANS) High global crude oil prices and a rise in the demand for US dollar pulled the Indian rupee to a fresh low on Wednesday.

However, at 2.05 p.m., the rupee recovered to 70.50-51 after it had plunged to 70.55 — the lowest ever mark — against the greenback on the back of an apparent intervention by the Reserve Bank of India (RBI).

The Indian currency opened the day’s trade at the Interbank foreign exchange market at 70.31-32 to a USD and soon surpassed its record low of 70.40 to a greenback made on August 16.

Around 12.30 p.m. the Indian rupee plunged to a fresh record low of 70.55 to a US dollar.

“There is some month-end US dollar demand from importers. Crude oil prices have also increased in last couple of sessions in the international market. These factors are pressuring the rupee,” Anand Rathi Shares and Stock Brokers research analyst Rushabh Maru told IANS.

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–IANS

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