Rupee hits record low on lower than expected GDP numbers

The Indian rupee hits a record low against American currency on the back of heavy demand for dollar from importers and continued worries over euro zone. Meanwhile local currency pressurized with lower than expected GDP growth because of poor investment and widening trade gap. India's economy grew at an annual rate of 5.3% in the quarter ended March 2012. GDP growth for the full year was 6.5% against 8.4% last year, reporting the slowest pace in three years. With this weak numbers central bank has very limited scope for monetary easing.  However mounting global worries with upcoming Greece re-election and rejection of the Bankia's bailout application by the ECB made investors nervous about global markets.

The partially convertible currency is currently trading at 56.40, weaker by 16 paise from its previous close of 56.24 on Wednesday. It has touched a high and low of 56.51 and 56.37 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 56.00 and for Euro it stood at Rs 69.84 on May 30, 2012. While, the RBI’s reference rate for the Yen stood at 70.51, the reference rate for the Great Britain Pound (GBP) stood at 87.4814. The reference rates are based on 12 noon rates of a few select banks in Mumbai.