A plunge in industrial output, that ended in the negative zone for the first time since June 2009 affected sentiments. Fears of capital outflows following weak economic data also hurt the currency.
The Indian rupee has closed at a record low, falling 1.5 per cent to breach the intra-day low of 52.73 against the dollar Monday. It closed at a record low of 52.83 against the dollar today.
A plunge in industrial output, that ended in the negative zone for the first time since June 2009 affected sentiments. Fears of capital outflows following weak economic data also hurt the currency.
On the global front, the euro dipped in Asia after the European Union fell short of a convincing plan to resolve the debt crisis. The weakness in Euro further added to the pressure on the Rupee. The Euro weakened below 1.33/$ after ratings agency Moody's warned of EU downgrades.
Forex dealers said a slew of measures like plunging stock markets, dollar gaining strength against its rivals in the overseas market weighed against the local currency which lost a whopping 81 paise against the Greenback on Monday.
"As FIIs pulled out from markets due to weak IIP numbers, the rupee has seen such a big fall today. Also, a weakening euro has added to the pressure," Head of Treasury Operation of IDBI Bank, N S Venkatesh said.
Analysts said existing economic woes were compounded by decline in industrial output which dent the confidence of investors.
Venkatesh said that buying pressure from importers for their unhedged exposure also supported Monday's trend.
(With inputs from PTI)
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