Dubai: The Indian rupee tumbled further on Wednesday following a setback suffered by the ruling Bhartiya Janata Party (BJP) in key state elections coupled with the shocking exit of the RBI governor.
At past 4am, the Asian currency was trading at 72.46 per US dollar, down from Monday’s 71.40. In the UAE, the rupee fell from 19.44 to 19.7 per dirham, the lowest in weeks.
Analysts said that the resignation of RBI chief Urjit Patel and the Assembly election results have sent shock waves through the financial community.
The rupee had earlier taken a serious beating from the greenback, plummeting to more than 20 against the UAE dirham in October and later recuperated to just above 19 per dirham. Analysts had said the currency could fall further and hit 27 per dirham.
On Friday, the rupee recuperated by eight paise to close at 70.82 against the US dollar, but the currency is again facing pressure from rising crude oil prices and foreign fund outflows, among others.
The currency’s previous weakness was partly attributed to higher crude oil prices. It’s been considered the worst performing currency among the fast-growing Asian economies this year.