The Indian rupee on Wednesday opened at all time low 73.24 per dollar, crossing the 73 mark for the first time. The Indian rupee opened 33 paise down against the Monday’s close of 72.91. Rupee has been devaluing due to sharp increase in global crude oil prices. The crude oil is at four-year high levels following sanctions on Iran disrupting the global supply. The US sanctions against Iran will be effective from November 4.
The rupee on Monday was down by 43 paise to close at 72.91 amid a strengthening greenback and steady capital outflows. Higher US Treasury yields, which rose above the 3 per cent mark, boosted the appeal for the dollar, analysts told PTI.
Foreign institutional investors net sold shares worth Rs 1,841.63 crore Monday, provisional data showed. Meanwhile, the Reserve Bank Monday announced that it will inject Rs 36,000 crore liquidity into the system through purchase of government bonds in October to meet the festival season demand for funds.
The auctions to purchase government bonds as part of the Open Market Operations (OMO) will be conducted in the second, third and fourth week of October.
“Rupee continues to be weak as crude oil prices remains high. Unless we have comfort from crude oil prices, we are likely to see weakness in rupee. It is going to hover in 70-72 range,” a senior treasury official said.
Moreover, RBI monetary policy will be out this week giving a direction to the economy. Market participants expect an increase in key lending rates due to increase in inflation in the country.
(With PTI Inputs)