Indian Rupee plunges to record low of 70.52 per dollar

Mumbai: The Indian rupee plunged to a record low of 70.52 during the noon-trade session on Wednesday.

It had retreated sharply on Monday to hit a closing low of 70.16 against the US dollar, plunging by 25 paise despite a huge rally in equities amid easing worries over near-term monetary policy tightening by the US Fed.

Indian equity benchmarks Sensex and Nifty on Monday scaled new peaks and logged their best single-day gains in nearly five months, tracking positive global cues as investors took heart from the US Federal Reserve’s “gradual approach” to raising interest rates

On August 16, the domestic currency had tumbled to a historic intra-day low of 70.40 before closing at 70.15 per dollar

The rupee has been hit by a range of factors including swelling current account deficit, surging global crude prices and lukewarm export growth. Besides, US trade protectionism has also contributed to excess volatility in the forex market.

(With IANS & PTI inputs)

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