Indian rupee fell to a two-year low as investors sold emerging-market assets in favor of the relative safety of the dollar, stung by the Federal Reserve’s pessimistic assessment of the U.S. economy as Federal Reserve said 'the economy faced 'significant downside risks' even as it took another stab at boosting growth. In its latest attempt to kickstart growth that slowed to a crawl over the first half of the year, the U.S. central bank would be now selling $400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt. Meanwhile, the Indian equity markets too drawing negative from the latest development along with that of regional counterparts, further spooked the sentiment of the Indian currency.
The partially convertible currency is currently trading at 48.72, weaker by 42 paise from its previous close of 48.30 on Wednesday. It touched a high and low of 48.82 and 48.68 respectively. The Reserve Bank of India's reference rate for the dollar stood at 47.89 and for Euro it stood at 65.63 on September 21, 2011. While, the RBI's reference rate for the Yen stood at 62.80 and the reference rate for the Great Britain Pound (GBP) stood at 75.3094. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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