Rupee closes below 73

The rupee on Wednesday reverted to its old ways of sagging against dollar as rising crude prices pushed the currency below 73 mark for the first time.

The pressure on currency cannot be solely attributed to oil-the US Federal Reserve has raised its rates that has led to a dollar rally and outflows from emerging markets including India.

Foreign portfolio investors have already pulled out ,$9 billion from the equity and bond markets. Experts have forecast the country's CAD- difference between foreign exchange earned and spent - which hit 2.4 percent of GDP during the first quarter of this year is set to rise further because of crude.

Warning bell ignored by India, leads to weakening of Rupee

Viewing the India's current economic strata, its more likely that it will take much time for rupee to recover. Its main cause was and is ignored by its Govt. India's is on the second highest level after United States of America which is having high external deficit.
The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 percent so far this year despite efforts by policymakers to prop it up.
With rupee crisis, high inflation, budget deficit, foreign debt economist have started comparing it with the scenario of 1991 economic crisis.