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Rupee slumps to historic low’s on Tuesday

13 Dec 2011 Evaluate

Indian rupee slumped to a record-low level on Tuesday as worries over Europe's debt crisis, which dampened global risk appetite, triggered a scramble for safe heaven dollar among both domestic as well as foreign investors. Meanwhile, weakness of regional counterparts which counterbalanced the impact of bounce back in local equities at the late hours of trade also weighed on the sentiment of beleaguered Indian currency. On the global front, although euro recovered from a two-month low versus the dollar on Tuesday but was seen as vulnerable to further selling as the threat of euro zone sovereign downgrades undermined sentiment towards the currency.

Finally the rupee ended at 53.23, weaker by 39 paise from its previous close of 52.84 on Monday. It touched a high and a low of 53.51 and 53.10 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.40 and for Euro it stood at 70.44 on December 13, 2011. While, the RBI's reference rate for the Yen stood at 68.58 and the reference rate for the Great Britain Pound (GBP) stood at 83.3247. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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