Rupee slide continues despite govt announcing sops

The slide of Indian rupee continued against the US dollar as it crashed below the 72-mark, in early morning trade on Monday, despite the sops announced by the government.

The domestic currency opened 32 paise lower in the Interbank Forex Markets at 71.98 against the greenback, as the unabated outflow of foreign investors from Indian markets continued.

The rupee continued to depreciate further and touched the mark of 72.09 against the American currency, down 43 paise.

The traders suggest that it is the continued outflow by foreign investors. “It is the golden opportunity for FPIs to dump stocks, and take their flight to safety,” traders said.

The rupee gained 15 paise to close at 71.66 against the US dollar on Friday on hopes that the government will roll back the FPI surcharge and unveil measures to boost growth. The higher surcharge on the ‘super-rich’ in the budget and lack of fiscal stimulus has triggered the sell-off by FIIs in Indian markets.

Till now, in August, the rupee has depreciated 4.77% against the US dollar.

Earlier on Thursday, the rupee had plunged to an over eight-month low of 71.81 amid tumbling equities and incessant foreign fund outflows, it added.