MUMBAI (Scrap Register): Indian rupee dropped to yet another record low level on Tuesday while gold and silver prices advanced slightly.
Indian rupee hit yet another all time low of Rs 58.98 against a dollar on Tuesday mainly due to the increasing demand for dollar among oil importers and and weak domestic shares hurt.
The partially convertible rupee was dipped 82 paise to Rs 58.98 on Tuesday compared with Monday's close of 58.16.
The Indian rupee fell 1.9% to 58.16 rupees to the dollar on Monday, breaching the previous low of 57.33 from June 2012.
Striking 58.98 per US dollar at its weakest, the rupee had plunged 3.25 percent so far this week, notching record lows for two consecutive days.
Dollar-selling by state banks, believed to be acting at the behest of the RBI, prevented a fall though the 59 per dollar level, though intermittent bouts of dollar selling by exporters had also slowed the fall.
Indian Gold and Silver prices
Both Indian gold and silver prices advanced on Tuesday mainly due to stockists buying as weak rupee raised concerns of increase in import costs.
Indian gold prices advanced by Rs. 415 to Rs. 28,515 per 10 grams in the national capital region while silver prices rose by Rs. 905 to Rs. 44,690 per kg on rising demand from industrial units and coin makers.
Gold prices of 99.9 and 99.5% purity advanced by Rs. 415 each to Rs 28,515 and Rs. 28,315 per 10 grams, respectively. It had gained Rs. 100 on Monday.
In a similar fashion, silver coins also advanced sharply by Rs. 2,000 to Rs. 79,000 for buying and Rs. 80,000 for selling of 100 pieces.