Rupee plunges to record low against dollar

KARACHI-Setting a new record, the rupee hit all-time low against the US dollar by touching Rs 80 in the open market on Tuesday.

The dollar-rupee parity, however, closed at record high mark of Rs 79.60 when the currency market closed its operations in the afternoon.

Badly undermined by the foreign currency’s downgrading on Monday by the Standard & Poor’s, the dollar-rupee exchange rate parity showed the biggest depreciation of Rs 1.8 paisa just within two days in the domestic currency market. The rupee remained under pressure against the US dollar and touched at Rs 80 starting new day’s trading at Rs 79.20 paisas for buying and Rs 79.30 paisas for selling at close of open market dealings on Tuesday, a forex dealer said.

The dollar-rupee exchange rate was already experiencing volatility and the fresh downgrading of rating of foreign currency ,added, fuel to fire and triggered the depreciation of rupee against major currencies, he added.

In interbank market, rupee shed significant grounds versus the US currency in the dealings amid demand of US dollar remained high. The dollar set off Tuesday’s trading at Rs 78.45 paisas, and was trading at Rs78.55 paisas at close of markets on Tuesday.