Rupee sinks to 1 year low; trades at 56.93 to the dollar

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, June 6, 2013, 9:17 [IST]

The rupee tumbled to a one year low against the US dollar, as robust dollar demand, pushed the Indian rupee to 56.93 against the dollar, a fall of 18 paise over Wednesday's close.

The government's measures to reduce demand for gold by hiking the import duty, failed to provide any respite to the falling rupee.

Surging gold imports has been responsible for substantial dollar outflow, putting the current account deficit and the India rupee closer to historic lows.

India's trade deficit has been rising, thanks to increasing oil and gold imports, which dealers say is ultimately responsible for the currency's downfall.

The RBI too has not been intervening in the forex market to sell dollars and would step in, only if the currency gets more volatile.

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