Rupee plunges below 60; gold, silver at 3-year low
Analysts say the currency may cross 63 in the near term as stronger dollar hits bullion prices.business Updated: Jun 27, 2013 02:11 IST
The rupee closed at a new historic low of 60.71 on Wednesday even as the Reserve Bank of India (RBI) intervened swiftly selling dollars to state-run banks to foil further currency shocks.
Global gold prices fell 4.2% to $1,224.18 per troy ounce, a 34-month low, and silver prices plunged 6.1 % to $18.45 an ounce, the lowest since August 2010. In India, gold prices fell Rs 685 to close at Rs 26,280 per 10 grams on Wednesday.
The rupee, which has fallen 13% since May, hit an all-time intra-trade low of 60.76 before recovering marginally to close at 60.71, a steep fall of 105 paise or 1.78% from Tuesday.
“As rupee has breached the 60-mark, it is likely to depreciate further in continuation of its strong bearish momentum, though a short bounce back cannot be ruled out,” said Sugandha Sachdeva, currency analyst, Religare Securities. “The level of 62 looks imminent in coming days and a breach might lead to a drift even towards 63-mark in near term.”
Foreign institutional investors (FIIs) pulled out nearly Rs 550 crore from stocks on Wednesday and outflows in June have totalled close Rs 9,000 crore. In the debt segment, till Tuesday, FIIs had pulled out Rs 27,850.20 crore.