Rupee slumps to 32-month low against dollarNovember 18th, 2011 - 9:23 pm ICT by IANS
Mumbai, Nov 18 (IANS) The value of Indian rupee slumped to Rs.51.30 against the US dollar Friday, the lowest in 32 months, due to increased demand for greenback from importers, fall in stock markets and continued concerns over inflationary pressure.
The Indian rupee fell 0.7 percent, the lowest since March 2009. The rupee has depreciated almost 14 percent against the greenback in four months.
The continuous slide in rupee may prompt the Reserve Bank of India (RBI) to intervene in the currency market.
“The RBI governor is watching the situation. As and when it is necessary, they will intervene,” Finance Minister Pranab Mukherjee said.
The fall has made imports costlier and will boost exports.
Selling pressure in Indian equities markets has also led to the southward move in the value of the currency.
The benchmark indices fell for the seventh straight day, closing at a three-and-half month low Friday as concerns about the European debt crisis continued to plague investors.
The 30-scrip sensitive index (Sensex) of the BSE fell 0.55 percent at 16,371.51 points.
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- Rupee recovers from record low but outlook gloomy - Dec 13, 2011
- Sensex plunges 425 points to end below 16,000 points - Nov 21, 2011
- 'India must cut subsidies, push reforms to defend rupee' - Jun 24, 2012
- RBI may not hike rates as growth slows - Dec 15, 2011
- RBI may not hike rates as growth slows (Roundup) - Dec 15, 2011
- Rupee hits new low for third straight session (Roundup) - Dec 14, 2011
- Rupee gains for second day as RBI intervenes - May 25, 2012
- RBI intervenes as rupee slides to new low (Roundup) - Dec 15, 2011
- Government can do little to check rupee slide: Rangarajan - Dec 14, 2011
- Sensex recovers to close 132 points higher - Dec 13, 2011
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