New Delhi, June 26 (ANI): The Indian rupee fell below the psychological mark of 60 on Wednesday, breaching the previous record low of 59.98 hit last week.
Traders blamed end-of-month dollar demand from domestic importers and decline in most emerging Asian currencies for the slump.
The partially convertible rupee traded at 60.50 at 4.21 p.m. against Tuesday's close at 59.66/67 per dollar. The currency had earlier hit a low of 60.64.
"We are close to a crisis situation. Nothing anybody does is materially going to control the fall, which is a global play. With each passing day, nervousness is increasing in markets," Jamal Mecklai of Mecklai Financial said.
The slide in the rupee came despite reports of suspected intervention by the Reserve Bank of India. The central bank reportedly sold dollars when the currency hit a low of 59.98.
Ashok Gautam of Axis Bank told NDTV that the big fear is of a free fall in the currency after the breach of the 60 mark.
"The moment 60 is breached, a sharp fall was expected and that is exactly what has happened. The RBI has been supplying dollars for some time, but at some stage we may see some administrative steps by the government," Mr Gautam said.
There is mismatch in the demand and supply of dollars, he added.
The falls in the rupee led to a slump in bond prices, with the 10-year bond yield up 4 basis points to 7.54 percent from the previous close. (ANI with inputs)
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