Rupee in free fall, slips below 57 against dollarJune 22nd, 2012 - 2:37 pm ICT by IANS
Mumbai, June 22 (IANS) The Indian rupee hit a record low for the second consecutive day Friday and slumped below the psychological resistance level of 57 against a dollar for the first time on increased demands for the American currency by oil and gold importers.
The partially convertible rupee opened weak and hit a record low of 57.30 against a dollar in afternoon trading.
The rupee had closed at 56.30 against a dollar after hitting a record low of 56.57 in the intra-day trade.
This is the fifth consecutive day of slump in the value of rupee. The value of rupee has declined sharply since Fitch cut its outlook on India’s sovereign ratings to “negative” from “stable”.
Fitch has become the second credit ratings agency after Standard and Poor’s to cut its outlook threatening India’s investment grade ratings.
Both these agencies assign India the lowest investment grade.
In its mid-quarterly review of the monetary policy announced June 18, the Reserve Bank of India also disappointed the markets by keeping interest rates unchanged.
RBI Governor D. Subbarao said early this week that the central bank would intervene in the currency markets only to contain volatility of rupee.
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- Rupee ends at 57.12 after slipping to 57.33 against a dollar (Lead) - Jun 22, 2012
- India pitches for ratings upgrade from Fitch - May 17, 2012
- Rupee rises for third day in a row - May 28, 2012
- Rupee gains for second day as RBI intervenes - May 25, 2012
- India's forex reserves drop by $1.37 billion - May 19, 2012
- Rupee slides to new low at 54.30 against dollar - Dec 15, 2011
- Rupee hits new low for third straight session (Roundup) - Dec 14, 2011
- India's forex reserves slump by $5.71 billion - Nov 27, 2011
- Rupee dips to record low of 54.42 against dollar - May 16, 2012
- India's forex reserves drop by $1.80 billion - May 26, 2012
- Rupee recovers from record low; Sensex up - May 17, 2012
- Rupee dips to new intra-day low of 54.91 to a dollar - May 18, 2012
- India Inc has to live with dollar at Rs.50: Kaushik Basu - Jul 07, 2012
- Rupee falls for eight straight day - Nov 23, 2011
Tags: american currency, bank of india, currency markets, gold, importers, indian rupee, interest rates, investment grade, monetary policy, reserve bank of india, resistance level, slips, slump, sovereign ratings, standard and poor, subbarao, volatility