Rupee hits new record low of 62 against the dollar

Business

oi-Sunil

By Sunil Fernandes

Updated: Friday, August 16, 2013, 10:32 [IST]

The rupee hit a record low of 62 against the dollar, on sustained demand for the US greenback, breaching its previous low of 61.80 to the dollar. Measures announced by the government of India and the RBI in the last few days failed to stem the slide of the rupee.

The rupee was last trading at 61.88 against the dollar, a drop of 50 paise over Wednesday's close of 61.83, after touching the 62 levels.

The RBI announced a fresh set of measures aimed at restricting foreign exchange outflows earlier this week. The Reserve Bank of India cut the amount of overseas direct investments allowed by Indians, as well as lowering the limits on remittances overseas and banning the use of such remittances for overseas property purchases. However, this, along with the import duty measures announced on gold, failed to prevent the rupee from falling.

The forex market today saw heavy dollar demand from importers, primarily oil refiners.

Dealers say that the rupee may stabilise around the current levels, unless there is some adverse news like the Fed tapering. Check rupee rates here

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