DHAKA: The Indian rupee ended at a record closing low of 68.80 against the US dollar on Wednesday.

After the fall value of per Rupee stood at 1.15 against Bangladeshi Taka 1.

The partially convertible rupee crashed around 3.9 per cent to hit a low of 68.85 as against Tuesday`s close of 66.24.

The rupee continued to slide despite frantic attempts by the government and central bank to support it and repeated comments by the finance minister that the rupee is oversold. Traders have now set their sight at around 70 levels to be breached soon in the absence of strong steps by the government and the central bank.

Jayesh Mehta of Bank of America Merrill Lynch told NDTV Profit that the fall in the rupee over the last four days has been dramatic.

"There are lots of expectations on the fiscal side that something might happen and markets are waiting for some announcements. It`s been pretty nice talk so far, but no implementation," he added.

On Tuesday, Finance Minister P Chidambaram said there is need to "be patient and firm" and the government is doing what is required to be done.

"Rupee will find its appropriate value," he added

The government is considering currency swaps to bolster the reserves, but currency experts said the move is unlikely to help.

"The focus is on how to finance the deficit and not curb it," AV Rajwade told NDTV Profit.

Traders also attributed month-end dollar demand from imports and sustained foreign selling in equities by FIIs for the sharp plunge in the rupee. Dealers say nearly $1 billion worth of Indian shares sold by overseas investors in the last eight sessions is a pretty big number and can easily extend itself in the current environment.

Source: NDTV
BDST: 1753 HRS, AUG 28, 2013
AKA/GCP