Rupee tumbles again, touches 64.13 against $ Mumbai : After a brief early morning stability following the RBI backup, the rupee tumbled again against the dollar and breached the 64 mark on Wednesday. It hit a record low of 64.13 per dollar mainly due to heavy dollar buying from large state-run banks. Earlier in the morning, the rupee recovered by 10 paise to 63.15 against the US dollar after the RBI continued to sell off dollars and buy back federal bonds from all banks in order to restore the rupee value. The central bank’s move to buy back its bonds increases supply of the rupee and thereby checks its fall in the international market. The rupee on Tuesday touched an all- time low of 64.11against the dollar and 100 + against the British pound, becoming the worst Asian currency by registering a fall of over 15% in the last three months. Market experts say India should encourage international trade in the rupee instead of dollar or any other currency. There is need to strengthen the Indian currency to help it regain as domestic measures would hardly yield results. The falling rupee will send commodity prices spiraling again. Market sources fear if no immediate measures were taken the rupee may further weaken to 70 a dollar.
Posted on: Wed, 21 Aug 2013 10:01:01 +0000
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