Rupee trades at new record low against dollar

DHAKA: Continuing its slide against the US dollar for the seventh day in a row, the rupee hit new record low of 56.38 in late morning trade on Thursday amid firm demand for the American currency from importers and continued capital outflows in view of Greece’s debt crisis.

Despite steps taken by the Reserve Bank to check the rupee’s downward slide, dollar’s gains against the euro and other major currencies in the overseas markets kept pressure on the Indian unit.

The rupee resumed lower at 56.20 per dollar against the Wednesday’s closing level of 56 and dropped further to an all-time low of 56.38 per dollar at 10:45am.

Globally, the US dollar remained strong against a basket of major currencies with euro remaining under pressure as European Union leaders’ pledge of united fight against the debt crisis failing to impress investors.

Dealers said increased dollar demand from importers, especially oil refiners coupled with capital outflows from foreign funds kept pressure on the rupee value against the dollar even selling of the American currency by exporters and banks failed to check persistent fall.

BDST: 1416 HRS, MAY 24, 2012

Edited by Robab Rosan, Cultural Affairs Editor