Rupee breaches 68/$ on dollar sale by FIIs, demand by importers

The rupee weakened in afternoon trades and breached the Rs 68 mark as Foreign Institutional Investors (FIIs) resorted to selling in domestic markets and there is dollar demand from importers which is keeping the rupee under pressure.

At 2:40PM the rupee was quoting at Rs 68.02 compared with previous close of Rs 66.02, a weakening of Rs 2 per dollar. The rupee had opened at Rs 66.30 per dollar.

According to currency dealers the Reserve Bank of India (RBI) may intervene due to which the rupee may recover somewhat. Last week the rupee had touched an all-time low of Rs 68.85 per dollar. Few currency experts believe that the rupee is heading towards Rs 70 per dollar unless the government takes concrete steps to arrest the fall.

Last week the central bank had allowed three public sector oil marketing companies for foreign exchange swap facility due to which the rupee had receovered from its all-time low.