Rupee sinks to historic low of 74.13..Modi minister says last 5 years best for Rupee

Mumbai/New Delhi, Oct 5: The Indian rupee Friday crashed below the 74-level against the US dollar for the first time ever after the Reserve Bank kept its key policy rate unchanged. The domestic currency was quoted 55 paise lower at 74.13 against the dollar soon after the RBI announced its monetary policy.Investors remained concerned over sustained foreign capital outflows and fears of widening current account deficit in the wake of soaring crude oil prices.At the Interbank Foreign Exchange (Forex) market, the local currency opened higher at 73.56 a dollar against its previous record low closing of 73.58. But, it failed to sustain the initial strength and fell back to breach the 74-mark.On Thursday, the domestic unit plummeted by 24 paise to end at record low of 73.58 a dollar.The BSE Sensex too plunged by 584.53 points, or 1.66 per cent, to 34,584.63 in late afternoon trade.Notwithstanding the knock that the rupee has taken against the dollar in recent days, Railway Minister Piyush Goyal on Friday said that it is the best period that India has seen when the currency has only depreciated by seven per cent in a five-year period."I think today we have an economy that is able to withstand the current international pressure. We have a situation like 2013, the dollar is getting strengthened because of the quantitative easing in the US. They are sucking out USD 10 billion and USD 300 or USD 350 billion every year. Trade rates have gone crazy. Oil prices are shooting up consistently. Despite that have you realised in 2013 the rupee to a dollar was at 68.86."We are in 2018, Five years later if a dollar is at Rs 73.5 effectively, the rupee has depreciated less than five rupees, which at 68.86 is about seven per cent. This to my mind is the best period that India has seen when the rupee has only depreciated by seven per cent in a five-year period," he said at the Hindustan Times International Leadership Summit.

News24 Bureau/ Agencies