Rupee hits a new record low, closes at 70.59 against the US dollar
The value of the currency dropped because of the fall in the value of other Asian currencies and an increase in the month-end demand for dollars.
The Indian rupee hit a new record low on Wednesday, closing at 70.59 against the United States dollar as compared to 70.10 the previous day. The rupee was the worst performer among Asian currencies, according to BloombergQuint.
The decline was a result of a drop in the value of other Asian currencies and an increase in the demand for dollars, which typically rises towards the end of every month as importers need to pay their bills, Reuters reported. Earlier in the day, the rupee opened at 70.30 against the dollar and then fell to a record low of 70.64.
The currency had first collapsed below the 70-a-dollar mark earlier this month after the United States’ decision to levy higher tariffs on Turkish imports hurt emerging market currencies. The previous lowest value that the rupee had touched was 70.39 on August 16.
In the stock market, the BSE Sensex fell 174 points to 38,723 and the NSE Nifty 50 declined 47 points to close at 11,692.
The Oil and Natural Gas Corporation and the State Bank of India were the top gainers on both the benchmark indices while Coal India, Reliance and Power Grid Corp saw their stocks decline the most on the two indices.
Fuel prices have been on the rise as the rupee remains weak.