The rupee weakened towards 64 per dollar on Wednesday as it slipped to 63.88 against Tuesday’s close of 63.53 in opening trade. The rupee last traded above the 64 per dollar mark in September 2013.
The weakness in the rupee has come in the wake of a global turmoil in stocks and currencies. Global risk assets have come under pressure after Russia’s sharp increase in interest rates reinforced concerns about the global economy at a time when oil prices are sliding.
Global concerns have led foreign investors to pull out money from equities, putting pressure on the rupee. On Tuesday, FIIs sold cash shares worth Rs 1,247 crore, extending their selling streak to a sixth consecutive session.
However, India’s domestic fundamentals continue to be strong and the country is widely seen as sturdier in the face of any sell-off in emerging markets compared with last year.
Foreign investors have purchased a net $43.4 billion in shares and bonds this year, allowing India to outperform most emerging markets.
(Edited by Joby Puthuparampil Johnson)