Rupee crashes to new low of 72.91, likely to touch 80 against US dollar

The Indian rupee on Wednesday collapsed to a lifetime low of 72.91 against the US dollar at the interbank foreign exchange market. The domestic currency was quoting 22 paise lower at a fresh record low of 72.91 against the US dollar in morning trade amid surging crude oil prices and unabated foreign fund outflows.

Escalating trade war concerns, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure, dealers said. On Tuesday, after scaling a historic low of 72.74, the local unit, finally settled day at 72.69, showing a loss of 24 paise, or 0.33 per cent.

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Rupee likely to touch 80 against US dollar

The rupee fall is likely to continue further and the government of Maharashtra even feels that may sink as low as 80 against the US dollar in the coming days.

In May 2018, the BJP-led state government had signed a contract worth Rs 127.11 crore to purchase VVIP helicopters from American company Sikorsky Aircraft. The total price (Rs 127.11 crore) of the contract was negotiated at the rate of $1= Rs 70 at that time.

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However, according to a new note released by the state government on September 11, 2018, the price of the contract has now changed to Rs 145.27 crore. The increase of Rs 18.16 crore in the VVIP choppers deal was due to the new rate of rupee which was set at $1= Rs 80.

(With inputs from PTI)