Indian Rupee Slides To New Record Low Against US Dollar
08:13, 21st May 2012
(RTTNews) - The Indian rupee resumed its free-fall against the dollar on Monday, moving past the key 55/dollar mark for the first time in response to downbeat global and domestic factors.
Indian shares erased most of their early gains as weakening rupee and the slashing of India's 2012 economic growth forecast to 6.3 percent from the earlier 6.9 percent by Morgan Stanley gave way to some late-session profit taking.
The benchmark 30-share Sensex ended the session up 30 points or 0.19 percent at 16,183, with 16 of its components advancing. The broader Nifty index rose by 15 points or 0.3 percent to 4,906.
The dollar is trading mostly higher on safe-haven flows into it as weekend summit of the G8 leading industrialized nations failed to announce necessary steps to lift the encircling gloom over Greece's debt woes.
The rupee reached 55.06 against the dollar, well-away from Friday's closing quote of 54.4050 and the previous low recorded last week at 54.9105.
The Indian currency has lost almost 12 percent against the dollar since it reached a multi-month peak of 48.57 in early February.
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