Rupee continues its losing streak against the US dollar for the seventh consecutive session. The Indian rupee on Thursday crossed the 72 mark for the first time.
The rupee opened higher at 71.66 but could not sustain the gains and fell sharply to a low of 72.12 at one point in afternoon trade. At about 1 pm, the rupee was trading at 72.04, revealing a steep loss of 29 paise.
“There is a panic now, especially among those who are unhedged,” said a forex official at a state-run bank.
However Finance Minister Arun Jaitley on Wednesday attributed the fall in rupee to global factors and said there was no need for panic or knee-jerk reactions.
He said, “We must bear in mind that dollar has strengthened against almost every currency. The Rupee has either consistently strengthened or remained in a rage, not weakened. Most of the other currencies of the world, compared to what it was 4-5 yrs ago, Rupee is better off.”
“RBI (Reserve Bank of India) is certainly doing whatever is necessary. I don’t think there is any need for the world’s fastest-growing economy to come out with panic and knee-jerk reactions,” he added.