India's rupee has fallen to a new all-time low against the dollar for the seventh straight day, due to global uncertainty and concern over the domestic economy. © AFP/File Indranil Mukherjee
MUMBAI – India’s rupee slid to a new all-time low against the dollar for the seventh straight day on Thursday, due to global uncertainty and concern over the domestic economy.
The Indian unit fell to a record low of 56.36, against the previous level of 56.21, before clawing back to 56.1 levels in early afternoon trade.
The local currency — down 10 percent in the new financial year — has been falling despite several suspected interventions by the central bank in the forex markets this year.
A declining rupee and high crude oil prices have exacerbated the current account deficit for India, which imports up to four-fifths of its oil needs.
India’s state-run oil firms on Wednesday announced a steep hike in petrol prices to offset growing losses caused by subsidised rates, rises in the international oil price and the rupee’s losses.
Shares of India’s state-run oil firms rose by between 4-5 percent on Thursday at the Bombay Stock Exchange, reacting to the price rise.
