Rupee hits new low vs British pound; breaches Rs 101-level

Macroeconomic concerns, ballooning CAD and adverse global cues affecting the rupee

Losing further ground, the rupee today hit a fresh low against the British pound and breached Rs 101 level in afternoon trade.

 

After crossing the Rs 100-level for the first time ever against the British pound in intra-day trade yesterday, the rupee had managed to close marginally below this mark at Rs 99.04 against the UK currency yesterday.

 

However, it slipped further to as low as Rs 101.2 this afternoon in the Interbank Foreign Exchange (Forex) market.

 

The rupee's weakness in recent months has come in the backdrop of various macroeconomic concerns in India, including a ballooning current account deficit and adverse global cues.

 

The rupee has depreciated by about 22% against the pound in the past three months, from close to 83 in mid-May, while it was at about 80 in March.

 

The pound has become the first major foreign currency to cost more than Rs 100 apiece. It is the most expensive against the Indian rupee among major foreign currencies, followed by the euro, Swiss franc, US dollar, Canadian dollar, Australian dollar, New Zealand dollar and Singapore dollar.