The Indian rupee continued its precipitous fall on Wednesday, breaching the psychologically important level of 60/$, driven down by foreign investors selling bonds and oil companies buying dollars, reports FE Bureau in Mumbai. The rupee crashed to a new low of 60.71/$, sliding 1.72% by close of trade. Dealers said strong demand for dollars from oil companies pushed the domestic currency towards the 60/$ mark, triggering stop-losses of positions held by banks, resulting in a near
free-fall in the last two hours of trade. The Reserve Bank of India didn’t intervene in a big way
perhaps hamstrung by a limited stock of foreign exchange reserves. Reserves stood at $290 billion
as on June 14. Dealers said public sector banks were seen selling dollars around 59.98/$, possibly at the behest of the central bank.