Rupee falls continues, hits all time low of Rs 71.75 per dollar
New Delhi, Sep 5: The fall in the value of Rupee continued on Wednesday and ended at an all-time low of Rs 71.75 per dollar. At around 10.30 am today, the value of Rupee was 71.65 per dollar, but it plummetted further to. At around 12 noon, it was 71.79 but it has now slumped to Rs 71.87 per dollar.
After the late afternoon trade on Monday, the value of Rupee was 71.21 per Dollar. The rupee on Tuesday slumped 16 paise against the American unit to trade at a life-time low of 71.37 on strong demand for the dollar.
A surge in global oil prices, concerns over US-China trade war and contagion risks from Turkey and Argentina's fall in currency valuations have impacted the forex market sentiments.
Weakening global cues, triggered by continuing trade war spats between the US and China, too impacted domestic market sentiment. The currency's fall has raised concerns on the macroeconomic front. Adding to the woes, the country's manufacturing sector activity eased for the second consecutive month in August.
An SBI report said on Tuesday that the rupee may fall further against the US dollar, prompting the Reserve Bank to adopt "orthodox" monetary policy like hike in interest rate to check depreciation of the domestic currency.
Also Read | Rupee may decline further against US dollar: SBI
In order to arrest the declining value of the rupee, SBI made a strong case for introduction of Standing Deposit Facility (SDF) at the earliest. SDF is an unlimited, uncollateralised, fixed rate deposit facility, which once operationalised, would enable RBI to absorb unlimited liquidity without any constraint of securities.