Thursday, December 15, 2011

Rupee trades at record low

Indian rupee, which shed nearly 4 percent during the last seven trading session, has hit a record low of Rs.54.27 by shedding 57 paise per dollar during the early trade on the Interbank Foreign trade.

The weakness in equity market and continuous rally of dollar against six major currencies has depreciated the value of rupee in overseas. The dollar index soared drastically against the six major rivals as the markets were witnessing heavy selling off on worries over the second recession.

The negative statement from rating agencies and Fed reserve about the growth of Europe and Us economy has further fuelled stocks squaring off in the global market. Thus, the demand for US dollar has been increased against the watchable currencies.

Besides, the traders were taking new positions in dollar currencies as it becomes safe assets after the stocks and even precious metals were declined during the past few days.

Yesterday RBI governor met Finance minister and Prime Minister to discuss about the rupee fall and possible measures to be taken to stop depreciation. Indian Inc’s expect the central bank to intervene in the foreign exchange market to ease rupee volatility against dollar trade.

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