Rupee hits new record low
Published : Wednesday, 28 August 2013
Source: The finacial Express
MUMBAI, Aug 27 (AFP): India's rupee plunged to a new low despite suspected central bank intervention and shares tumbled Tuesday on fears about the impact of massive new food subsidies on already strained finances.
Asian shares and currencies were also hit on concerns over possible US military intervention in Syria, raising fears of a spurt in oil prices.
The rupee, one of Asia's worst-performing currencies this year, fell to a lifetime low of 66.07 rupees to the dollar in afternoon trade, slipping past its previous low of 65.56 last Thursday.
Tuesday saw one of the sharpest single-day falls in history, with the rupee plummeting 2.73 percent in value from Monday's close of 64.31.
"The RBI (Reserve Bank of India) is suspected to have sold dollars at 65.90 levels, but it failed to prop up the rupee," a dealer with a forex firm said.
The benchmark Sensex index plunged 3.18 per cent to close at 17,968.08 points, while local prices of gold, considered a safer investment, rose.
Source: The finacial Express
MUMBAI, Aug 27 (AFP): India's rupee plunged to a new low despite suspected central bank intervention and shares tumbled Tuesday on fears about the impact of massive new food subsidies on already strained finances.
Asian shares and currencies were also hit on concerns over possible US military intervention in Syria, raising fears of a spurt in oil prices.
The rupee, one of Asia's worst-performing currencies this year, fell to a lifetime low of 66.07 rupees to the dollar in afternoon trade, slipping past its previous low of 65.56 last Thursday.
Tuesday saw one of the sharpest single-day falls in history, with the rupee plummeting 2.73 percent in value from Monday's close of 64.31.
"The RBI (Reserve Bank of India) is suspected to have sold dollars at 65.90 levels, but it failed to prop up the rupee," a dealer with a forex firm said.
The benchmark Sensex index plunged 3.18 per cent to close at 17,968.08 points, while local prices of gold, considered a safer investment, rose.
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