The rupee fell to 79.25 against the US dollar in early trade on Friday as rising global recession risks have been pushing the Indian currency to a record low.
On the interbank forex market on Friday, the rupee opened 12 paise lower at 79.25 against the American currency, PTI reported.
The rupee will trade near its historic low in three months, battered by widening trade and current account deficits, according to a Reuters poll where nearly one in three analysts expected it to weaken to 80 per dollar by September.
Although the Reserve Bank of India’s intermittent dollar selling helped limit losses, higher global crude oil prices and steady capital outflows have widened its current account deficit which in turn has dragged down the rupee.
But the worst is still not over.
While the July 1-6 poll of over 40 foreign exchange analysts showed the rupee is now expected to trade around 79 per dollar by end-September, nearly one-third of respondents forecast it to be at a new historic low of 80 to the dollar or more, as per a Reuters report.