Rupee plunges to new closing low of 72.97 against dollar

NEW DELHI: The embattled rupee on Tuesday plunged 46 paise to close at a new record closing low of 72.97 against the US dollar, news agency Reuters reported. The Indian currency had previously hit an all-time low of 72.91 (intra-day) on September 12.
Last week's record low was breached despite intervention from the Reserve Bank of India (RBI) that sold dollars late in the day in a bid to stem the slide in the rupee, said dealers.
In the early trade, the domestic currency recovered 10 paise to 72.41 against the US dollar amid volatility on fresh selling of the US currency by exporters and banks. But in late afternoon deals, the rupee gave up the initial gains to hit a new low.
The currency had closed at 72.51 on Monday.
Finance minister Arun Jaitley had blamed the depreciation of rupee to a combination of global factors, including trade war and internal policy decisions of the United States.

Last week on Friday, the government had announced five-pronged strategy to deal with the slide in currency and widening current account deficit (CAD). The steps taken to arrest fall in rupee include removal of withholding tax on Masala bonds, relaxation for foreign portfolio investments, curbs on non-essential imports.
The rupee had fallen more than 12 per cent against the dollar this year and is the worst performing Asian currency.
(With inputs from agencies)