Rupee Slides Past 65 Against The Dollar For First Time In 2 Years

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The rupee dropped past the 65 levels against the US dollar for the first time in two years, after the Peoples Bank of China devalued the Chinese Yuan. The Indian rupee was last trading at 65.01 against the dollar, a drop of 24 paise against Wednesday's close.

Check rupee rates against the dollar here

Rupee Slides Past 65 Against The Dollar For First Time In 2 Years
The Indian rupee has been in a freefall since the beginning of the week after China devalued its currency. From levels of 63.65 at the start of the week, the rupee has now fallen past the 65 levels.

Dealers say the Reserve Bank of India has not been intervening in the market. This may allow the rupee to fall and make Indian exports more competitive.

On Tuesday, the People's Bank of China reformed the exchange rate mechanism to better reflect market development in the exchange rate of the Chinese yuan against the US dollar.

The move surprised the market and prompted the lowest valuation of the yuan since October 2012. The central parity rate of the yuan against the US dollar weakened by 1,136 basis points on Tuesday and further dipped 1,008 basis points to 6.3306 on Wednesday.

Also read How The Chinese Devaluation Of The Yuan Affects India?

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