Rupee falls further, now hits 72.66 per United States dollar


Around 12.30 am, the rupee traded at 72.66 per greenback.

The local currency hit another record on Monday after data showed that India's current-account deficit widened to the most in five years.

Strong dollar demand along with panic among importers sent the domestic currency tumbling by a sharp 94 paise to hit a historic low of 72.67 on Monday, triggering the central bank intervention to defend the currency.

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Henry McMaster, governor of SC , warned the United States should be braced for the hurricane to hit. McMaster estimated about 1 million residents would be fleeing the coast before Florence's arrival.

India's current account deficit (CAD) widened to United States dollars 15.8 billion in April-June in value terms this year as against USD 15 billion in the same quarter of 2017-18, mainly due to a higher trade deficit, according to RBI data released Friday.

Surging crude oil prices have buoyed demand for the U.S. currency among Indian oil refiners.

The rupee crashed below the 72-mark to end at a life-low of 72.45 against the U.S. dollar on growing fears of contagion from an emerging-market rout and escalation of a global trade war.

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Dare County Emergency Management told residents and visitors to evacuate Hatteras Island by Tuesday at noon. Such swells can lead to unsafe surf and rip currents, the NHC warned.

Government officials communicated last week with the Reserve Bank of India on the need to intervene more aggressively in the market to support the rupee, the people said, asking not to be identified as the information is not public.

Meanwhile, global rating agency Moody's Investors Service has said that a sustained weakening of the rupee would be credit negative for rated Indian companies, Business Standard reported.

However, of the 24 Moody's-rated India-based corporates across the high-yield and investment-grade categories, 12 generate most of their revenue in U.S. dollars or have contracts priced in the greenback, providing a natural hedge, and thus limiting the effect a weakening in the rupee could have on their cash flows, it said.

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A mandatory evacuation for residents and visitors in other areas of the county goes into effect at 7 a.m. Some 27 percent of the deaths have come from rain-driven flooding, sometimes hundreds of miles inland.