India pushing Rupee as next global trade instrument
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The rupee weakened by 8 paise to 65.15 against the US dollar in early trade today at the Inter bank Foreign Exchange on increased demand for the American currency from banks and importers.
Dealers attributed the rupee’s fall to the dollar’s strength against some other currencies overseas and unabated foreign fund outflows.
Domestic stocks soaring to record highs after the government’s unprecedented Rs 2.11 lakh crore bank recapitalisation road map capped the fall, they added.
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Yesterday, the rupee had shed 5 paise to close at 65.07 against the dollar.
The benchmark BSE Sensex zoomed by 509.99 points, or 1.56 per cent to trade at an all-time high of 33,117.33 and the NSE Nifty rallied 132.85 points, or 1.30 per cent to quote at a fresh life-time high of 10,340.55.
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