Ignoring fresh measures announced by the government, the rupee on Wednesday fell 24 paise to an all-time closing low of 61.43 against the US dollar mainly due to sustained demand for the American currency from importers. The jump in headline inflation rate to a five-month high in July also hit sentiments.
The previous closing low for the rupee, which had touched an intra-day record low of 61.80 last Tuesday, was 61.30 on August 7.
The rupee opened low at 61.54 a dollar from its previous close of 61.19 and touched a low of 61.56 on initial weakness in local stocks and dollar selling by exporters. It recovered to a high of 61.29 on a smart rebound in local equities, only to fall again to 61.43.
“The structural issues like the high current account deficit remains unresolved,” said NS Venkatesh, treasurer at IDBI Bank.
“Until inflows actually start coming in, which could be over a period of six months, we will continue to see weakness.”
In a bid to stem the rupee’s slide, the government on Tuesday raised import duties on gold and silver.
After market hours, the RBI also announced fresh curbs on outflows under the automatic approval route.