New Delhi, Aug 20 (PTI): The Indian rupee on Tuesday hit a fresh bottom below Rs 100 against the British pound, even as the markets remain focussed on the Indian currency hitting a record low of below Rs 64 against the US dollar.
The rupee hit a new low of Rs 100.35 against the British pound (GBP) early Tuesday morning, as weak domestic fundamentals including ballooning current account deficit weighed down on the Indian currency.
After a modest recovery from its bottom, rupee was seen trading at Rs 99.7 against the British pound by mid-day trade. The rupee has depreciated by about 25 per cent in the past three months, from close to Rs 83 in mid-May, while it was even higher at about Rs 80 against the British Pound in March.
At close to Rs 100 level, the British pound is the most expensive against the Indian rupee among major foreign currencies across the world, followed by euro (Rs 85), Swiss franc (Rs 69), US dollar (Rs 63.7), Canadian dollar (Rs 61.5), Australian dollar (Rs 57.8), New Zealand dollar (Rs 50.9) and Singapore dollar (Rs 49.8).
Against the US dollar too, the rupee hit a fresh low below Rs 64-level on Tuesday and slipped to as low as Rs 64.11 before marginally recovering to Rs 63.72 by mid-day in the Interbank Foreign Exchange (Forex) market.
The rupee had recorded the decade's worst single-day fall of 148 paise to close at record low of 63.13 on Monday, while it dropped further by about 98 paise Tuesday morning.
Forex dealers said besides strong demand for the American currency from importers and banks, dollar's strength against other currencies overseas amid expectation that the Federal Reserve will soon taper its bond-buying programme weighed on the domestic currency.
Continuing plunge in equity markets in view of sustained capital outflows by foreign funds is further adding to the pressure on the rupee.
Last week, in order to arrest the rupee slide, the Reserve Bank of India had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering fears of return of capital control regime.
Weak domestic fundamentals such as record current account deficit concern too put pressure on the rupee, they said.
Meanwhile, the BSE Sensex dipped below 18,000 level, falling 336.54 points, or 1.79 per cent, to 17,970.98 points in morning trade following persistent selling pressure from investors amid sustained unloading by foreign funds.
Sharp depreciation of rupee value against the dollar in early trade weakened the market sentiment.
The Sensex resumed lower at 18,142.83 and dropped further to a low of 17,970.98 before quoting at 18,167.27 at 1050hrs, showing a loss of 140.25 points or 0.77 per cent from its last close.
The NSE 50-shares Nifty also declined by 41.15 points or 0.76 per cent to 5,373.60 at 1050hrs.
Foreign institutional investors (FIIs) sold shares worth a net Rs 680.08 crore on Monday according to provisional data from the stock exchanges.
Most Asian stocks retreated in the early trade triggered by a fourth straight day of losses on the Wall Street.
Key benchmark indices in Indonesia, Singapore, Hong Kong, Japan, South Korea and Taiwan were down by 0.15 per cent to 4.69 per cent while China's Shanghai Composite rose 0.08 per cent.