Indian rupee plunged to its weakest in nearly 28-months on Thursday 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 US 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 kick start growth that slowed to a crawl over the first half of the year, the US central bank announced that it would be selling $400 billion of short-term Treasury bonds to buy the same amount of longer-term US government debt. However, the Indian currency also traced the colossal losses in the regional counterparts and local equity markets ended on an abysmal note.
Finally the rupee ended at 49.56, weaker by 1 rupee, 26 paise from its previous close of 48.30 on Wednesday. It touched a high and low of 49.56 and 48.68 respectively. The Reserve Bank of India's reference rate for the dollar stood at 48.82 and for Euro it stood at 66.10 on September 22, 2011. While, the RBI's reference rate for the Yen stood at 63.61 and the reference rate for the Great Britain Pound (GBP) stood at 75.4814. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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