Plunges to over 6-mth low of 71.43

Mumbai: The Indian rupee tumbled 29 paise to close at an over six-month low of 71.43 against the $ on Monday amid growing worries over economic slump and sustained foreign fund outflows.

Further, rising crude oil prices and strengthening of the $ vis-a-vis other currencies overseas also took toll on the Indian currency. Forex traders said investors are awaiting government intervention to revive the slowing economy.

There are expectations that the government would come out with sector-specific stimulus sometime soon. At the interbank foreign exchange market, the rupee opened on a weak note and fell to a day's low of 71.48 against the $.

The domestic currency finally settled at 71.43 against the $, slipping 29 paise over the previous close.

This is the lowest level for the local unit since February 7, when it had closed at 71.45 a $. On Friday, the rupee had settled at 71.14 against the $. "Rupee on Monday has under-performed significantly to the other Asian currencies.

Brent crude has been inching up for last two sessions," said V K Sharma, Head-PCG & Capital Market Strategy, HDFC Securities.

Sharma further said that the $ was hovering near two-week highs against a currency basket on Monday as US Treasury yields bounced back from recent lows amid hopes that major economies will seek to prop up slowing growth with fresh stimulus.

Next major support for the rupee is seen at 72.40 odd levels, he said. Meanwhile, the 10-year government bond yield was at 6.58 per cent on Monday.