The rupee continued to depreciate its value against the dollar in the interbank market on Wednesday, as panic and uncertainty put downward pressure on the exchange rate.
Advertisement
In the open market, the rupee was down 30 paisa from Tuesday’s closing, trading at 105.60 against the Dollars.
The recent climb of the dollar against the rupee has been attributed to a strong demand of the greenback from importers and its outflows from the country. However, in the overseas market on Wednesday, the U.S. dollar soared after Federal Reserve policy makers left the door open for an interest-rate hike in December.
The rupee shed further 50-paisa against the dollar for buying and selling at Rs 105.50 and Rs 105.70 respectively, while it also fell by 25-paisa versus the euro for buying and selling at Rs 116.00 and Rs 117.00 respectively, they added. Currency dealers say the growing demand is due to oil-related payments. However, it closed at 105.50 a dollar, down 25 paisas from its previous closing of 105.25; following intervention by the State Bank in the forex market.
Money market sources claim the government in talks with the worldwide Monetary Fund in Dubai has been pressured to devalue the rupee.
Advertisement
The latest rise in dollar’s value has stretched rupee’s depreciation to over 3.5 per cent since July 1.
