Indian rupee tumbles by 37 paise to a fresh low of 71.58 against US dollar; may decline further, says SBI

The Indian rupee continued to take plunge against US dollar on Tuesday. The domestic currency fell down by 37 paise to close at a fresh record low of 71.58.

Rising crude oil prices and negative global cues have hit rupee hard. However, it's not that only rupee has taken a dip.  The pound sterling also finished higher at Rs 91.77/79 at the close of the Interbank Foreign Exchange (forex) market today.

A SBI report has echoed the sentiments expressed by experts that the domestic currency may fall further. The report claimed that Reserve Bank of India may adopt 'orthodox' monetary policy, like hike in interest rate, to check depreciation of the domestic currency.

Watch This Zee Business Video

Forex dealers said besides strong demand for the American currency from importers, capital outflows too weighed on the domestic currency.

Benchmark Brent crude oil was trading at $78.05 a barrel.

Yesterday, the rupee had lost 21 paise, to close at an all-time low of 71.21 against the US dollar.