Rupee drops to 74.14 on RBI rift with Govt

The Indian rupee slumped by 46 paise to 74.14 v/s the USD on account of concerns over mounting rift between the Central Bank and Government. Sustained dollar demand from importers, constant foreign fund outflows and the US dollar’s strength weighed on the local unit.

The local currency may also have come under pressure due to continuous selling by Foreign Portfolio Investors (FPI) in the Indian equity markets. According to the data, FPIs had pulled out Rs 1,592.02 crore from equity markets on Tuesday.

Meantime, the RBI has said that it will infuse Rs 40,000 crore into the system in November by buying govt bonds by way of open market operations for maintaining liquidity in the market.