Rupee hits record low against dollar, plunges below 60 mark
The Indian rupee today ranked by a massive 105 points to close at a historic low of 60.71 against the dollar. The Indian Rupee declined below the 60 mark breaking the previous record low of 59.98 hit.
The slump is being attributed to heavy capital outflow and increasing dollar demand from domestic importers and decline in most emerging Asian currencies for the slump.
The fall in the rupee came despite intervention by the RBI. It is suspected that central bank had sold dollars when the currency hit a low of 59.98. The rupee, which is the second worst hit among the major emerging market currencies after the South African rand as the US dollar has been rallying to historic highs, has lost nearly 12% since May and 7% in June itself. The falls in the rupee has led to a decline in bond prices.
Month: Current Affairs - June, 2013