Downward march: Rupee breaches 71-mark against dollar for first time

The rupee has come under pressure due to a multitude of factors

The Indian rupee closed at 71 a dollar level on Friday, amid nervousness that it could fall further. The rupee has fallen more than 10 per cent year to date, making it the worst-performing currency in Asia and one of the worst-performing among emerging markets.

Although there is no panic in the market, as hedging discipline has improved vastly from earlier, importers have started buying options. According to currency dealers, there is no mad scramble to buy protection against rupee volatility.

“Hedging activities are going on as normal. I don’t see too much of any one-sided position, or overly unhedged