Rupee hits a new all-time low of 73.77 against USD
- Oct 05, 2018,
- Updated Oct 05, 2018, 1:43 AM IST
Guwahati, October 4, 2018:
The rupee hits a new all-time low of 73.77on Thursday, against the US dollar, as global oil price continues to increase. The morning half saw a 44 paise drop in the local currency against the US dollar, which was 43 paise till yesterday.
Concerns about the Current Account Deficit (CAD) and capital outflows are deepening as the oil prices kept raising regularly. There has been a continuous demand for dollar, mainly by the oil refiners, which also kept the rupee under pressure.
The state-owned oil marketing companies have been allowed to raise $10 billion from overseas market to meet their working capital needs. However, they are not allowed to raise external commercial borrowing (ECB) on a long-term basis.
The oil marketing companies can only lift up a maximum of one-year overseas loan through buyer’s credit. They need to repay the loan within 12 months and raise it again.