MUMBAI: India’s rupee touched a new record low of more than 60 to the dollar yesterday, deepening the abrupt slide in the currency as overseas funds continue to pull out of emerging markets. Despite government efforts to slow the fall and interventions from the central bank in recent weeks, the rupee slid past its previous low of 59.98 against the dollar, struck last week.
In evening trade, the partially-convertible Indian currency hit a new record low of 60.76, before finally ending Indian trading at 60.72, down 1.88 percent intraday from an opening level of 59.60.
“What we saw on the screens was really bad. No level was holding,” said Naveen Mathur from Mumbai’s Angel Broking.
Dealers said the Reserve Bank of India (RBI) may have intervened several times in recent days, particularly on Wednesday as the rupee inched closer to the 60 mark.
Asian currencies, including the Indian rupee, have been falling against the strengthening dollar as the US Federal Reserve looks set to scale back its stimulus plans as the US economy recovers.
The stimulus, which has seen the US central bank buy billions of dollars of assets to increase the money supply, had fuelled investment flows into emerging markets.
Reuters
