Rupee hits lifetime low of 57.54 against dollar

The rupee on Monday plunged by 48 paise to hit its life-time low of Rs 57.54 in early trade on heavy dollar demand and the US currency strengthening against major rivals overseas. Forex dealers said a firming dollar against euro and other currencies in the global market on the back of better-than- expected US jobs report and strong demand for the American currency from importers mainly weighed on the rupee. The rupee had lost 22 paise to close below the key 57- mark at 57.06 on Friday against US dollar for the first time in a year.
Analysts and traders will now watch for any possible intervention from the central Reserve Bank of India to stem any further weakening of the currency. The widening of India`s current account deficit -- the broadest trade measure -- to just under five percent of gross domestic product in the last financial year from 4.2 percent the previous year has also weighed on the rupee. The weaker currency makes imports costlier, especially of foreign oil on which India relies heavily, and will stoke already high consumer inflation.