The Indian rupee resumed its slide on the first trading day of 2012 as government continued to face fiscal slippages, which means its expenditure is more than the income and it has to borrow more. Increased demand for the dollar from importers also weighed on the rupee sentiment. Announcement over the weekend about letting foreign individual investors buy into equity markets failed to trigger the local currency. The lack of foreign capital flows is hurting the Indian economy and the currency. However on Friday, the central bank said the government would borrow an additional Rs 40,000 crore through bonds in the fiscal year that ends in March.
The partially convertible currency is currently trading at 53.31, weaker by 26 paise from its previous close of 53.05 on Friday. It has touched a high and a low of 53.3450 and 53.2500 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.3585 and for Euro it stood at 68.9881 on December 29, 2011. While, the RBI's reference rate for the Yen stood at 68.67 and the reference rate for the Great Britain Pound (GBP) stood at 82.5082. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| December 30, 2011 | 53.36 | 82.51 |
| December 29, 2011 | 53.35 | 82.50 |
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