Indian rupee opens weak, hits record low of 67.44 against US dollar
The Indian rupee fell below the 67 per dollar mark on Wednesday as uncertainty over a possible US-led military strike against Syria knocked down Asian equity markets and currencies, also pushing the domestic benchmark bond yield to 9 per cent.
The partially convertible rupee was trading at a record low of 67.40/45 per dollar, sharply below its close of 66.24/25 on Tuesday. The benchmark 10-year bond yield was up 22 basis points at 9 per cent.
Worries about the food subsidy bill had dragged the Indian rupee to a fresh all-time low of 66.30 to the US dollar on Tuesday before closing at 66.24 as the market ignored government assurances on keeping the fiscal deficit in check.
The Indian rupee fell amid weak local equities, US dollar demand from importers and banks, outflows and rising oil prices. The interbank foreign exchange market, the Indian rupee resumed lower at 65 a dollar from the previous close of 64.30 and remained in negative terrain through the day. It dropped to a record intra-day low of 66.30 before settling a tad better at 66.24, a fall of 194 paise or 3.02 per cent.
The rupee had plunged 148 paise on August 19. The previous lifetime low was 65.56 on August 22.