Rupee plumbs newer lows; dips to 64.52 against dollar

Mumbai  :  Despite interventions from the central bank and the government, the rupee Wednesday continued in the free-fall mode hitting a new record low of 64.52 against a dollar.

The rupee, savaged by large dollar demands from banks and importers, has plunged to new lows for the fourth session in a row.

The partially-convertible rupee slipped to a new record low of 64.52 against a dollar at the inter-bank foreign exchange market here, surpassing its previous record low of 64.13 hit Tuesday.

The rupee had recovered and closed at 63.25 against a dollar Tuesday after the central bank’s interventions in the currency markets.

The equities markets witnessed extremely volatile trading. Key indices, including the benchmark Sensex of the Bombay Stock Exchange and Nifty of the National Stock Exchange, ended the day with loss of nearly two percent.

The Sensex closed 340.13 points or 1.86 percent down at 17,905.91 points. The index has lost 1,450 points in the last four sessions.

The Indian currency as well as equities markets witnessed nervous trading ahead of the US Federal Reserve report on stimulus policy.