Forex reserves continue to drop as rupee hits new lows

WITH the rupee coming under tremendous strain, trading below the sensitive 84 mark for more than a fortnight now, the RBI has been selling dollars to defend the currency, leading a $2.163 billion fall in the forex reserves to $688.267 billion for the week to October 18.

- 

The rupee hit a new low on Friday, closing at 84.077 to the greenback. The previous low was 84.075 on Thursday. The currency is under pressure as foreign investors are dumping shares like hot coal, having so far sold a tad over $10 billion in October alone, making this month the worst sell-off month by foreign investors.