Rupee dips to a record low against USD

Mumbai: The rupee tumbled to a new record closing at 46.75/76 against the US currency, on Monday.

The Indian currency was pulled down by fresh negative developments amid strengthening dollar in the overseas market owing to rising crude prices and a slowdown in FII inflows.

Resuming extremely weak by more than ten paise from last weekend's close of Rs 46.3650/3750 per dollar, the rupee came under severe pressure in latter part of the day, fuelled by the news of an earthquake in the Indian Ocean and a subsequent Tsunami warning for Indonesia and Australia.

Dollar rallied against most currencies in global markets on Monday as it became more attractive amid heightened geopolitical risks and investors reportedly digested Bank of Japan's first interest rate hike in five years.

Citing the earthquake and Tsunami warning as the prime factor for the rupee's dramatic fall to an all-time low, Forex dealers said there was limited dollar demand from oil companies in anticipation of higher import payment.

After a weak start, the rupee value was gradually eroded further and ended at the record low of Rs 46.75/76 a dollar in the absence of central bank's intervention to arrest the fall.

The rupee had last ended at its lowest levels of Rs 46.57 per dollar three year ago, a dealer from a leading bank said.

World crude oil prices are currently hovering around its record high of $78 per barrel as violence continues to rage in the Middle East amid concerns about a wider conflict.