Mumbai: The rupee plunged by 70 paise to a new record low of Rs 57 against the US dollar in mid-session trade Friday on increased capital outflows and rising demand from importers for the American currency.
Dollar also gained against euro and other currencies in the overseas forex markets amid global economic growth concerns, Moody’s downgrade of world’s 15 biggest banks and mounting worries over euro-zone debt troubles including the size of a bailout needed to save Spain’s banking sector.
Besides, weak India stock markets also put pressure on the rupee, forex dealers said.
After opening lower at Rs 56.80, rupee recovered partially to 56.76 before slipping again to surpass all previous records to trade at new low of 57.06 against the dollar, down over 70 paise over yesterday’s close.
Forex dealers said intervention by the RBI and dollar selling by exporters, however, limited the losses.