The rupee touched a record low of 56.90 against the US dollar in the morning trade on Friday on global risk aversion and demand for dollar.
At 9.44 am, the Indian unit was trading at 56.90 against the American currency as risk assets were under pressure on global economic slowdown. The highest in the morning trade was at 56.76 per dollar.
The rupee shed 50 paise to open at 56.80 from its previous close of 56.30 on Thursday. The local currency had surpassed an all-time low of 56.57 in the intra-day trade yesterday.
Amounting to pressure from declining domestic growth, RBI’s monetary pause and Fitch Ratings outlook revision to negative, the rupee has shown worsening signs. Analysts and traders expect the domestic unit to hover around 57-58 levels in June.
The RBI Governor, Dr D. Subbarao, had said on Tuesday that the central bank will intervene in case of volatility in the forex market.
Source: The Business Line
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