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Indian Rupee nosedives to its all-time low of 73.34 against dollar: 6 things to know

Indian Rupee on Wednesday nosedived to lifetime low of Rs 73.74 against the dollar.

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Indian Rupee on Wednesday nosedived to lifetime low of Rs 73.74 against the dollar. Markets were closed on Tuesday on account of Gandhi Jayanti. On Wednesday, Rupee hit its lowest over a sharp rise in global crude oil prices within the last two sessions weighed on sentiment for the local unit. 

On Monday, the rupee tumbled 43 paise to end at a near two-week low of 72.91 against the US dollar amid a strengthening greenback and steady capital outflows.Higher US Treasury yields, which rose above the 3 per cent mark, boosted the appeal for the dollar, analysts said.

The dollar rose to near 1-month highs against global currencies.

Here are six things you need to know: 

1. The Reserve Bank of India on Monday announced that it will inject Rs 36,000 crore liquidity into the system through purchase of government bonds in October to meet the festival season demand for funds. The auctions to purchase government bonds as part of the Open Market Operations (OMO) will be conducted in the second, third and fourth week of October.

2. "Rupee continues to be weak as crude oil prices remains high. Unless we have comfort from crude oil prices, we are likely to see weakness in rupee. It is going to hover in 70-72 range," a senior treasury official told PTI.

3. On Wednesday, Asian shares reversed early losses while the euro rebounded from six-week lows on reports Italy will cut its budget deficit at a faster pace than expected, raising hopes Rome could stave off a problematic debt blow-out.

4. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.2 percent with Hong Kong's Hang Seng index up 0.5 percent and Singapore shares adding 0.9 per cent.

5. Oil prices dipped on Wednesday. 

6. Gold traded near its highest level in more than a week as investors sought refuge in the safe haven after equity markets weakened. Spot gold was last at 1,206.04 after adding 1.3 percent to $1,208.23 an ounce overnight.

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