Hyderabad: With the rupee plunging to a historic low, the government and the RBI swung into action to slow down a further fall of the battered Indian currency as global economic conditions continued to deteriorate and fears of higher inflation increased.
The rupee fell steeply by 43 paise to breach the historic low of 73.34 after crude oil prices crossed $85 a barrel fuelling concerns over capital outflows and widening current account deficit in the country.
On Wednesday, foreign investors have withdrawn 1,550 crore from Indian capital markets, according to the provisional exchange data.
The rupee opened lower at 73.26 per dollar on Wednesday due to high crude oil prices against the last close of 72.91 per dollar. The currency pared some losses to touch a high of 72.90 per dollar on market speculation that RBI may open special dollar window for oil companies.
However, without any clear signals from the central bank, the rupee crashed to all-time low before settling at 73.34....