The rupee shed a staggering 64 paise to an all-time low of Rs 62.30 against the dollar in the opening session on Monday against the previous close of 61.66 on the back of weakness in the domestic equity market.
The benchmark BSE Sensex opened 0.39 per cent lower on Monday due to concerns over US monetary stimulus withdrawal which has put pressure on the domestic unit.
According to dealers, the heavy FII outflows from the domestic equity market have been weighing on the currency. The dollar saw high demand from importers as the currency market remained closed over the week-end.
Market players say the continuous slide in the rupee can only be halted if the Government hikes the import duty on non-essential goods such as mobile phones and electronic items.
Kuntal Sur, Director at KPMG India, said: “Overall, the market is in a state of panic and is moving on negative cues. Also, the measures announced by the RBI have not really taken the desired effect as they are more ad hoc in nature and not structural.”
Source:- thehindubusinessline.com
No comments:
Post a Comment