Rupee sinks to life’s low of 52.72 a dollar
22 Nov 2011
The rupee plummeted to a lifetime low of 52.73 against the US dollar, hammered by rising demand for dollar amidst outflows on FII divestments in Indian stocks.
A combination of rising dollar demand from oil refiners, slowing of exports and an increased outflow of short-term portfolio investments has made the rupee more vulnerable.
The rupee touched a low of 52.73 to the dollar in morning trade and was indicated at 52.58/59 at 10.40 am, down 0.8 per cent from the previous close of 52.1550/1650 a dollar.
The rupee was last seen hitting a record low against the dollar at 52.1950, on 3 March 2009.
The Indian unit is now down 16.8 per cent against the greenback from its July 2011 high of 44-45 to a dollar, pressed down by a volatile market and market sceptcism.
The RBI too seems incapable of reversing the rupee's fall by sustained intervention in the market as the resources at its disposal too are limited.
