Mumbai: Continuing on slippery slope, the rupee slid to a new low point of 55.95 against the US dollar at midsession on persistent demand for the American currency from banks and importers amid weak stock market.
The dollar has been gaining strength against other global currencies as well.
The rupee has continued the fall for the sixth day in a row despite some steps taken by the Reserve Bank amidst capital outflows from foreign funds and weakening equities.
The rupee resumed lower at 55.65 per dollar against the last closing level of 55.39 per dollar and dropped further to an all-time low of 55.95 per dollar at 1236 hrs.
In New York market, the US dollar rose to its highest level since January against a basket of major currencies, bolstered by a drop in the Japanese yen after Fitch cut Japan's sovereign rating to A+ from AA.
Traders said increased dollar demand from banks and importers, especially oil refiners coupled with capital outflows from foreign funds following melting stocks mainly affected the rupee value against the dollar.
They said the plunging dollar had overshadowed the stocks market as the BSE benchmark Sensex dropped below the 16,000 mark, down 179 points in midsession trade on Wednesday.
The market regulator, SEBI data showed that FIIs sold worth Rs 283 crore of Indian stocks yesterday with the Sensex losing 157 points.


With a steep fall in value of rupee, Prime Minister Manmohan Singh Tuesday said that in a market economy currency goes up and down and there are global uncertainties to which India is not an exception.

"In a market economy, currency goes up and down," Singh told mediapersons in a brief informal interaction at a dinner that he hosted here on completion of three years of UPA-II government."There are uncertainities, global uncertainities," he said while adding that India was no exception to the norms.

Answering to a query, the prime minister said he would visit Pakistan at an "appropriate time".Asked about negative perceptions of UPA government, Singh said that such a perception will be corrected by "what is happening in reality".

The prime minister assured that his government would fulfil its agenda and not disappoint people.


Latest News from Business News Desk