Mumbai:
The rupee today slumped 43 paise against the dollar to trade at a life-time low of 70.32 on strong demand for the US currency.
At the Interbank Foreign Exchange, the local currency opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.
Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
A sharp surge in trade deficit too impacted the rupee. Trade deficit soared to a near five-year high of USD 18 billion, data released by the commerce ministry on Tuesday showed.
Furthermore, depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee, they added.
The rupee had gained 4 paise, to close at 69.89 against, the dollar in the previous session on Tuesday.
Forex market was shut yesterday on account of Independence Day.
Meanwhile, the BSE Sensex fell by 207.03 points, or 0.54 per cent, to 37,644.97 points in early trade.
Foreign institutional investors (FIIs) sold shares worth a net of Rs 378.84 crore on Tuesday, as per provisional data.
What is interesting to note is that ‘monetary policy experts’ like Chetan Bhagat and Sri Sri Ravi Shanker resorted to a vow of silence now. They had expressed deep concerns back in 2013 when the rupee was valued at 60 per dollar during UPA regime.
Flashback:
It is refreshing to know that the rupee will get stronger at Rs.40/- per dollar if Modi comes to power http://t.co/OacZDXesGy
— Gurudev Sri Sri Ravi Shankar (@Gurudev) March 20, 2014
Rupee at 60. It is mayhem. Close to an economic crisis. But well, the government is silent.
— Chetan Bhagat (@chetan_bhagat) June 20, 2013
UPA Government and the Rupee seem to be in a competition with each other on who will tumble down more. http://t.co/Rl8RMMJ9kZ
— Narendra Modi (@narendramodi) July 24, 2013
In 2013, even Narendra Modi had said the fall in the value of rupee is not because of its ‘size’ but because of people sitting in Delhi who are busy in corruption.
Rupee is not losing strength because its size has changed.It is because those sitting in Delhi are busy in corruption: Modi ji
— narendramodi_in (@narendramodi_in) July 14, 2013
On an earlier occasion, when rupee had reached 68.89 against the US dollar, a Twitter user had also posted Union Minister Sushma Swaraj’s old tweets.
To Quote Sushma Swaraj: The Rupee has lost its value. The Prime Minister has lost his grace. pic.twitter.com/J3IQtOBZnQ
— Joy (@Joydas) May 7, 2015
With PTI inputs