Continuing its downslide, the Indian rupee tumbled to an all-time low of 64.45 against the dollar in late afternoon trade on Wednesday.
The slide was triggered by sustained dollar demand from banks and importers on the back of a strengthening US currency overseas, coupled with a sharp fall in local stocks.
The rupee resumed lower at 63.45 per dollar as against yesterday’s closing level of 63.25 per dollar at the Interbank Foreign Exchange Market and dropped further to hit a historic low of 64.45 at 1445 hours. It hovered in a range of 63.10 to 64.45 per dollar.
The Reserve Bank of India on Tuesday announced a slew of measures to ease liquidity, including a Rs 8,000 crore bond buyback, to ensure adequate credit flow to productive sectors of the economy.
The measures are aimed at easing liquidity conditions in the market which has worsened after the RBI’s money tightening steps, including raising short-term rates, to curb volatility in the exchange rate of rupee.
The benchmark S&P BSE Sensex dipped by more than 400 points in late afternoon trade.