against dollar by falling 98 paise to trade at record low of 64.11 on
persistent dollar demand and a weak opening in the domestic
equity market.
At the Interbank Foreign Exchange (Forex) market, the local
currency opened sharply lower at 63.75 a dollar from its previous
close of 63.13 and breached 64 mark to trade at fresh low of
64.11, down by 98 paise, or over 1.5 per cent.
Forex dealers said besides strong demand for the American
currency from importers and banks, dollar's strength against other
currencies overseas amid expectation that the Federal Reserve will
soon taper its bond-buying programme weighed on the domestic
currency.
Weak domestic fundamentals such as record current account
deficit concern too put pressure on the rupee, they said.
The rupee had recorded the decade's worst single-day fall of 148
paise to close at record low of 63.13 against the dollar in the
previous session.
In order to arrest the rupee slide, RBI last week had announced
measures such as restriction on Indian firms investing abroad and
on outward remittances by resident Indians, triggering talks of
return of capital control regime.
Meanwhile, the BSE Sensex dipped below 18,000 level falling
336.54 points, or 1.79 per cent, to 17,970.98 points in morning
trade.
Bassar
bassar@aol.in
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