Rupee slides below 56 against dollar

May 23rd, 2012 - 2:55 pm ICT by IANS  

Pranab Mukherjee Mumbai, May 23 (IANS) The Indian rupee breached another psychological level of 56 against a dollar Wednesday, hitting a new low for the sixth session in a row.

This follows persistent demands for the American currency from importers and banks amid rising risk aversion in the global markets.

The rupee opened weaker at 55.66 against a dollar Wednesday against the previous day’s close of 55.40, and hit a low of 56 in the Wednesday afternoon session.

The Indian currency has hit new intra-day low for the sixth consecutive session.

Finance Minister Pranab Mukherjee said Tuesday that the government was taking steps to stem the rupee’s slide.

However, he emphasised that the fall was largely due to uncertainties in global currency markets.

The American dollar has strengthened against major global currencies including euro and Japanese yen.

However, Indian currency is the worst hit. It has lost nearly 23 percent of value against the dollar since the beginning of this year, the worst performance among major global currencies.

Indian stocks markets have also come under pressure due to the persistent slide in the value of rupee.

The benchmark Sensex of the Bombay Stock Exchange slipped below 16,000 points mark. The index was trading 0.35 percent lower at 15,970 points in the afternoon session Wednesday.

The wide-based Nifty of the National Stock Exchange was down 0.35 percent at 4,843.25 points.

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