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Rupee crashes to a 6-week low on global worries

08 Aug 2011 Evaluate

Extending the previous session’s mayhem, Indian rupee has fallen to a 6 week low on Monday. The blood bath at Dalal Street post global equity sell-off following U.S. rating downgrade which has triggered concerns about foreign fund outflows has mainly spooked the sentiment for the domestic currency. Further, worries over global economic growth have accentuated after rating agency Standard & Poor's on Friday cut the long-term US credit rating by one notch to AA-plus from AAA on concerns about the government's budget deficits and rising debt burden. On the global front, the U.S. dollar fell against the yen and Swiss Franc but was stronger against the euro as investors came to grips with the reality of a credit downgrade for the world's biggest economy. 

The partially convertible currency is currently trading at 44.94, weaker by 21 paise from its previous close of 44.73/74 on Friday. It touched a high and low of 45.06 and 44.90 respectively. The Reserve Bank of India's reference rate for the dollar stood at 44.80 and for Euro it stood at 63.11 on August 05, 2011. While, the RBI's reference rate for the Yen stood at 57.02 and the reference rate for the Great Britain Pound (GBP) stood at 72.8586. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
August 05,201144.80 72.8586
August 04,201144.41 72.6984
RBI-Reference rate

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