Rupee hits record low of 72.12

The Indian rupee today crashed below the 72-level for the first time ever on persistent global headwinds and concerns on macroeconomic front. The domestic currency was quoted 37 paise lower at 72.12 against the US dollar in afternoon trade.

The rupee has fallen nearly 2 percent this month and more than 12 percent this year, making it Asia’s worst performing currency. Dealers estimate the RBI today to have sold about $1 billion, which they said is not much given the pace of the rupee’s fall.

However, Finance Minister Arun Jaitley said yesterday that there was no need for a panicked reaction to the rupee’s fall. He attributed the fall in rupee to global factors and stressed that the domestic unit was better off as compared to other currencies.

Commerce secretary, Anup Wadhawan, said the slide was due to global developments and was helping India’s exports, which rose 14.32 percent in July to $25.77 billion from a year earlier.

“It is quite puzzling to the markets what the government and RBI want on the rupee, and why the government is sending out such signals that they are not worried about the rupee,” said a forex trader at a state-run bank.

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