As the rupee fell, Congress on reminded Prime Minister Narendra Modi of his jibe when the UPA was in power, and alleged the BJP-led government was sitting "idle" and doing nothing to arrest the slide.
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The Reserve Bank of India has been defending the rupee and has lost a significant amount of foreign exchange reserves
The rupee losses on Friday were, however, limited by dollar sales by exporters, who felt that the domestic unit may not fall much further, given the sharp depreciation seen this week
The government raised import taxes on gold, while increasing levies on exports of gasoline and diesel in an attempt to control a fast-widening current account gap.
Depreciation of rupee makes India's imports costlier, while on the other hand exports become attractive.
A shortfall in India's current account -- the broadest measure of trade -- will probably widen to 2.9% of gross domestic product in the fiscal year ending March 31
The rupee breached the psychologically significant level of 79 per dollar level for the first time ever on Wednesday and has also hit a series of new lows this month
Dealers say magnitude of RBI interventions slowed down over past couple of days
In the previous session, the rupee had closed at its all-time low of 79.03 against the US dollar
Indian currency closes at 78.97 to the greenback after hitting all-tine low of 78.98 intraday
At the interbank foreign exchange market, the rupee opened lower at 78.86 against the greenback and finally settled at 79.03, down 18 paise over its previous close.
To control the tumble, the Reserve Bank of India (RBI) has sold dollars in the spot market and simultaneously bought and sold in the forwards market.
Persistent foreign capital outflows and a surge in crude oil prices led to the slump
This move by the central bank results in premiums crashing
During the day, the local unit witnessed an intra-day high of 78.19 and a low of 78.35 against the American currency.
Stock market live updates: The Sensex and Nifty benchmarks are heading for a higher start on Friday, tracking strength in the US overnight and Asian markets this morning. As of 07:00 AM, the SGX Nif
Recovering from its record low, the rupee opened 12 paise up at 78.20 against the US dollar on Friday, tracking a pullback in crude oil prices
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.41% to 104.62
CLOSING BELL: Maruti Suzuki, Eicher Motors, Hero MotoCorp, Bajaj Auto, M&M, and Tata Motors were the top Nifty gainers, advancing between 3.5 per cent and 6.7 per cent