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Rupee plummets to a record low level on Thursday

15 Dec 2011 Evaluate

Indian rupee plummeted to a record low for the fourth consecutive session on Thursday as investors increasingly grew bearish about the outlook for both the domestic and global economies, raising the prospect of further capital outflows from emerging markets. Further, RBI's hands-off approach also amplified the currency's weakness as exporters have hesitated to book dollar receivables while importers have been forced to cover short dollar positions. Meanwhile, even weak local equities and regional counterparts, have dented the sentiment of Indian currency

On the global front, euro crept higher on Thursday, but still hovered near an 11-month low hit the previous day as signs the European debt crisis is far from over prompted investors to sell risky assets and bolstered demand for the dollar.

The partially convertible currency is currently trading at 54.20, weaker by 48 paise from its previous close of 53.72 on Wednesday. It has touched a high and a low of 54.30 and 54.10 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.57 and for Euro it stood at 69.89 on December 14, 2011. While, the RBI's reference rate for the Yen stood at 68.75 and the reference rate for the Great Britain Pound (GBP) stood at 82.9747. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 14, 201153.57 82.9747
December 13, 201153.40 83.3247
RBI-Reference Rate

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