The Indian rupee went down by 70 paise to a new record low of Rs 57 against the US dollar as reported in mid-session trade Friday.
Further, reports have said that this fall is due to high capital outflows and increasing demand from importers for the American currency.
The value of Dollar once again jumped against Euro as well as other currencies in the international forex markets among global economic growth concerns.
Moody’s downgrade of world’s 15 major banks along with mounting worries over euro-zone debt difficulty plus the size of a bailout required to save Spain’s banking sector.
Talking to media, a forex dealer said, “In addition, weak India stock markets also put pressure on the rupee.”
After opening lower at Rs 56.80, rupee recovered slightly to 56.76 before dropping again to outshine all previous records to trade at new low of 57.06 against the dollar, down over 70 paise over yesterday’s close.
Moreover, Forex dealers said, “Intervention by the RBI and dollar selling by exporters, however, limited the losses.”
