Rupee falls to an all time low

Rupee falls tremendously to a record low followed by RBI’s cautious role towards the current market situation market situation. While traders too under play as regards to the current scenario maintained by the market.

Amidst vulnerable situation in the European market and global risk from euro zone  and India’s bad policy implementation and deficit the rupee touched level of 56 as against dollar.

On a yearly average rupee falls greater than 5 percent to dollar making it the worst performing currency in the Asian subcontinent. Since its last high in February rupee has fallen by 13 percent.

However, as per the traders a stop gap arrangement has been made by the RBI by keeping a low profile in selling the dollar.

While central bank has an alternative to sell dollars to the oil importers it is crucial for RBI to intervene in order to save rupee from a steep fall. It is the sixth day when rupee has seen a fall yet again leading RBI to rescue it.

Major damage has been made by the unstoppable demand of dollar by the oil importers and some other companies. Whereas, on the other hand central bank has taken several major steps to stop rupee from a tremendous fall such as raising the rate of deposits for the NRI’s and also asking exporters to convert the currency to rupees. Though, both the measures have failed to make much impact.