Rupee slides to new low at 54.30 against dollar
December 15th, 2011 - 2:36 pm ICT by IANS
New Delhi, Dec 15 (IANS) The Indian rupee sank to a record low for the fourth straight day Thursday hitting 54.30 against a dollar in early trade, as importers and investors continued to buy the US currency on speculation of further capital outflows amid gloomy economic outlook.
The rupee breached the psychologically important 54 level for the first time and slumped to a new low of 54.30 to a dollar in early trade.
This is the fourth day in a row which has seen the rupee sliding to new lows. The Indian currency has weakened almost 20 percent against the dollar since July this year.
The rupee closed at 53.88 to a dollar Wednesday.
Finance Minister Pranab Mukherjee Wednesday blamed the huge capital outflow for the recent slide in rupee.
“While the Indian economy faced excessive capital inflows in the aftermath of the global crisis leading to appreciation of the domestic currency, with the unfolding of the eurozone crisis, the matter of concern at present is reversal in such flows leading to increased currency volatility,” Mukherjee said.
So far, the Reserve Bank of India has not made any significant intervention in the currency market to control the slide of rupee.
C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council and a former RBI governor, said the central bank could intervene to combat fluctuations in the currency if the factors affecting it were from within the country.
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- Government can do little to check rupee slide: Rangarajan - Dec 14, 2011
- Rupee dips below 55 against a dollar - May 21, 2012
- Rupee to stay volatile on uncertain economic outlook - Dec 18, 2011
- Rupee rebounds as new RBI norms check volatility - Dec 16, 2011
- Rupee dips to record low of 54.42 against dollar - May 16, 2012
- Rupee hits record low of 54.50 against dollar (Lead) - May 16, 2012
- Rupee dips to new intra-day low of 54.91 to a dollar - May 18, 2012
- Rupee falls for eight straight day - Nov 23, 2011
- Rupee sinks to 56.18 against dollar (Lead) - May 23, 2012
- Rupee falls on IIP figures, impact of RBI action muted - May 11, 2012
- Government trying to resolve rupee crisis: Pranab - May 20, 2012
- Indian economy hit by high inflation, slowing growth (2011 in Retrospect) - Dec 28, 2011
- Mukherjee hints at austerity as rupee dips to record low (Roundup) - May 16, 2012
Tags: bank of india, c rangarajan, capital inflows, capital outflow, currency market, currency volatility, domestic currency, economic advisory council, economic outlook, finance minister, global crisis, importers, indian currency, indian economy, indian rupee, lows, pranab mukherjee, rbi governor, reserve bank of india, us currency