Zee Media Bureau
New Delhi: The rupee fell by another 27 paise to trade at fresh two-year low of 65.81 against the dollar on Friday.
Here are five reasons behind the crash of Indian currency.
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1. Renewed demand for the American currency from banks and importers are weighing on the rupee.
2. Lower opening in the domestic equity market weighed on the local currency.
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3. Sharp sell-off in global currency and financial markets predominantly pressurised the rupee to retreat after a brief rebound, but the greenback's weakness against other currencies overseas restricted the fall.
4. Emerging market currencies too fell on concerns over the outlook for global growth against the backdrop of slowing growth in China.
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5. Stability of Yuan at lower levels after a bout of near 5 percent depreciation has helped Asian currencies and rupee to stem further depreciation against dollar.
