Rupee plunges to new low on RBI policy, breaches 74-level against dollar

The Rupee plunged to a fresh all-time low on Friday, breaching the 74-mark for the first time ever. The fall came after the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 per cent. 

Rupee has been falling continously for the last few weeks. Only two days before, it had breached the 73-mark for the first time.

High oil prices and rising current account defict has been the major factors behind the continued fall. 

In recent weeks, the rupee has taken a beating amid volatility in global markets and strengthening of the greenback. The central bank has been taking various measures to shore up the rupee.

Om Monday, the RBI said it has decided to purchase government bonds worth Rs 360 billion through Open Market Operations (OMO) this month.