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Rupee plunges to another historic low(Update:Rupee)

Mumbai, Aug. 27 (ANI): The rupee continued to topple on Tuesday to hit its all-time low 65.70 against the U.S. dollar, as the Parliament is expected to discuss the worsening of the Indian economy today.

The rupee had ended down 1.74 percent (110 paise) at 64.30 against the US dollar on Monday after hitting an intra-day low of 64.75 in the previous session.

Stock markets sank around 3 percent, following the further depreciation of the rupee. Meanwhile, the BSE Sensex crashed over 500 points.

Earlier today, Finance Minister P. Chidambaram said that the country will have to be patient, and assured that the value of the rupee will stabilize.

“We have to be patient, firm and rupee will find its appropriate level,” Chidambaram said.

Additionally, Chidambaram reportedly met with foreign investors on Saturday for suggestion on attracting dollar inflows to strengthen the economy, but no major steps have been announced so far.

As the financial aspect of the Food Security Bill continues to burden and worry lawmakers, the scheme is likely to further weaken the economy as it will fuel inflation which will make it harder for the Reserve Bank of India (RBI) to cut rates at a time when the country’s economy is growing at its slowest pace in recent times.

The rupee hit its previous all-time low of 65.56 against the U.S. dollar last week. (ANI)