The rupee on Wednesday plunged against the the dollar to a historic low of 54.56 before closing slightly better at 54.50 despite RBI’s intervention, raising widespread concerns about the health of the economy.
Forex dealers attributed the fall to strong capital outflows in tune with the fall in local as well as global stocks where investors are increasingly avoiding riskier assets and moving to the new safe haven - the US dollar.
At the Interbank Foreign Exchange, the domestic unit opened sharply lower at 54.06 and mostly remained bearish.
Intra-day it plunged to all time low of 54.56, surpassing the previous all-time low of 54.30 recorded in December last year.