Rupee Crosses 74 Again On Rift Between Govt And RBI

The rupee breached the 74 mark once again, as tensions between the government and the RBI surfaced, with some reports even hinting that the RBI Governor may resign.

The rupee was last seen trading lower by 39 paise at 74.07 to the dollar. Sustained demand for the dollar, particularly the month-end demand weighed on the Indian rupee.

The currency may also have come under pressure due to the persistent dollar demand, due to continuous selling by Foreign Portfolio Investors in the domestic equity markets.

These set of investors have nearly $3.8 billion worth of shares in the cash market in the month of Oct alone.

Meanwhile, equity markets plunged with the Sensex falling 283 points, while the Nifty dropped 93 points, on reports that there maybe a possibility of the RBI governor resigning.

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