Rupee hits historic low against US Dollar, falls 22 paise to touch 71-mark

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The Indian Rupee hit a historic low of 71 against US dollar.

The Indian Rupee hit a historic low of 71 against the US dollar.

The Rupee fell 22 paise in morning trade at 70.95 per dollar versus Thursday’s close of 70.74.

The downward trend followed a strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.
Growing fears about rising inflation in the midst of high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed down on the domestic currency.

Exporters are facing uncertainty due to a continuous depreciation of the domestic currency as they are not able to negotiate properly prices of goods in the global markets, FIEO today said.

Meanwhile, the benchmark BSE Sensex recovered over 100 points and NSE Nifty reclaimed the 11,700-mark ahead of the release of key GDP data scheduled later in the day.

The 30-share Sensex rose 138.06 points, or 0.36 per cent, to 38,828.16 in early trade, after hitting a low of 38,611.46 at the outset. It lost 206.53 points in the previous two sessions.