Rupee tumbles again; scales past 61 to the dollar

Business

oi-Sunil

By Sunil Fernandes

Updated: Monday, July 8, 2013, 9:36 [IST]

The trend of the rupee creating fresh historic lows continued with the Indian currency breaching the 61 mark to the dollar in trade today. The rupee was last trading at 61.16 to the dollar dollar, a fall of 93 paise over Friday's close.

Weak equities and sustained dollar demand from crude importers kept the rupee under pressure today. Talks of large scale dollar remittance from the recent stake of Unilever Brothers in HUL failed to have a significant impact on the rupee.

Dealers say that today's drop of 1 per cent was swift with the rupee opening at lower levels. They see the rupee breaching the 61 mark, unless there is large scale intervention by the Reserve Bank of India. Today's sharp drop could now raise alarm bells in the government as a falling rupee would push inflation and tie the RBI's hands for effecting further rate cuts.

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