INR today has devalued to 68-mark against USD. Meanwhile, BSE Sensex dropped down to below 24,000-mark.
Indian currency, Rupee has depreciated to over 2-year low level at 68 per USD. This record low level was seen on 4 Sept’13, when India was in the midst of its worst currency turmoil since the balance of payment crisis.
Meanwhile, the BSE Sensex has also dropped down by 481.19 points (1.96%) to the crucial 24,000-mark at 23,998.65 at mid-session (intra-day); its lowest since 16 May’14.
The major cause of INR depreciation is high dollar demand from importers amidst constant capital outflow by foreign funds. Alongside, a weak trend in domestic equities has weighed on the domestic unit. Today, INR is trading at 67.98 against USD.
The devaluation of currency will make Indian exports dearer to the neighboring country, affecting the competitiveness.
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