Rupee breaches 67 mark, hits two-year low

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The Indian rupee has hurtled to a new low despite upbeat projections about growth prospects of the country’s economy. The rupee breached the 67-mark by depreciating 18 paise to 67.06 against the dollar in early trade on December 14 at the Interbank Foreign Exchange, mainly on strong demand for the American unit from importers and some banks amid a lower opening of the domestic equity market.

According to a few analysts, besides dollar’s gain against some overseas currencies, sustained capital outflows weighed on the domestic unit. The rupee had closed 17 paise lower against the US dollar at 66.88 on December 11, the lowest level in more than two years in the face of strong demand for the US dollar.
The benchmark BSE Sensex was trading below the 25,000-mark with a fall of 176.70 points or 0.70 per cent to 24,867.73 in early on December 14. Depreciation of the rupee has been a major cause of concern for many Indian businesses.

 

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