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Rupee nosedives to lowest ever of 41.52 against dollar
Following reports of the World Bank deferring its loan decision on India, the forex market went into a tizzy on Wednesday. The rupee which closed at 41.18 on Tuesday opened at 41.30 and rose up to a whopping 41.52 before steadying at 41.33. Dealers said the rupee could hit the 43 mark. They said the Reserve Bank was not even trying to arrest the fall. Sunil Sharma of ANZ Grindlays Bank said it seemed the RBI did not want to intervene. It seemed the government wanted to to let the rupee weaken. Another reason cited for the fall in the rupee was a strong corporate demand for the dollar. Sharma said a healthy move was that corporates were hedging. (Business Aaj Tak)