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Rupee at record low; dips to 45.03/$

The Indian rupee tumbled to a new all time record-low against the US currency early on Friday, as persistent dollar demand continued to exert severe pressure on the Indian currency.

The rupee, which dipped to an intra-day low of 45.075 per dollar, finally closed at 45.025/03 per dollar today. Heavy corporate demand for dollars coupled with foreign institutional investors making heavy sales in the Indian capital markets are cited as the reasons for this fall in the rupee.

The rupee clocked a fresh lifetime low of Rs 45.07 per dollar in afternoon business, shortly lower from the on Thursday's record low closing of Rs 44.90/91. The rupee opened at Rs 44.90/91.

In hectic trade at the inter-bank foreign exchange market, banks went long on the dollar in anticipation of heavy dollar demand from corporates and importers.

The rupee has been reeling under pressure since last few days on genuine dollar demand from corporates and importers, dealers said.

Major part of the dollar demand came from foreign banks which were believed to be buying for foreign institutional investors. FIIs have been net sellers of $200 million till date during July, a dealer said.

Indian currency had plunged to a then historic-low of Rs 44.92/95 in early intra-day trade on June 8.

Meanwhile, in cross currency trades, the euro was quoted at Rs 41.88/91, pound sterling at Rs 67.86/89 and Japanese yen (100) at Rs 41.43/46.

PTI

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