A day after stock markets crashed 723 points down, the economy suffered a blow with rupee falling lower than 64-mark. Indian Rupee is now trading at Rs. 64.25 as against the US Dollar. The Indian stock market and the Sensex have recorded a steep fall since Wednesday.
The fall in the value of Rupee is lowest since September 2013. The reason for the fall is reasoned due to the sustained capital outflows by foreign funds. The emerging market of India is witnessing a sharp selling of shares by the foreign entities.
According to the Foreign Exchange dealers, the reason behind the fall is said to be the Sustained dollar demand from importers and thus banks kept rigorous pressure on the Indian unit. Surge in crude oil prices globally too weighed on the Rupee along with Dollar’s weakness overseas and the capped losses in the local units.
Persistent foreign funds outflows, weighed down by lingering concerns over MAT and delay in passage of key tax reform bills in the Parliament, dragged down the rupee to 20-month lows.
The rupee opened lower at 63.75 as against last closing level of 63.54 at the Interbank Foreign Exchange (Forex) market, later it slid further to breach 64-level to trade at 64.25 at mid-session, showing a significant fall of 71 paisa.
Meanwhile, brent prices fell 56 cents to USD 67.21 in early Asian trade after hitting 2015-high in the previous session.
At the same time, the BSE Sensex was trading 189.09 points or 0.71 per cent down at 26,528.28 at 1415 hrs.