The Indian currency rupee on Wednesday collapsed against the greenback by losing 119 paise - its biggest single day fall in 12 years. The rupee ended the day at Rs 49.30/31, a steep fall of 2.47% or 119 paise over its previous close.

Dealers in foreign exchange said that rupee’s fall to this extent was surprising considering the fact crude prices have come down which should have otherwise strengthened the domestic currency.

Brokers said the Reserve Bank intervened when the rupee breached the 49-level to prevent its further fall. “Exports declining by 15% for Septmeber also cast a shadow over the rupeee,” they said. Continuing captial outflows was anonter crucial factor that led to rupee’s fall. Stocks markets on Wednesday closed weaker with benchmark sensex shedding another 303 points, or 3.08%. With fall the barometer has lost hefty 1,000 points in just two days.

Source: Times Of India