English | دری

Indian rupee plummets to historic low against dollar

in International Business

Indian rupee plummets to historic low against dollar

                                                                                                    The Indian rupee has continued its downward slide of the past few days and hit an all-time low against the dollar in early trade on Wednesday.

The Indian currency fell to 55.82 rupees against the US dollar, down from 55.39 on Tuesday.

The slide comes amid concerns that slowing growth and a high rate of inflation may hurt India’s economy.

Analysts said worries about a global economic slowdown had fanned those fears further.

The Indian rupee has been dropping against the US dollar since August last year, falling by almost 26% against the US currency since then.

Various reports have suggested that India’s central bank, the Reserve Bank of India, could intervene by selling dollars via state-run banks to arrest any further falls.

Exporter rules

On Tuesday, Finance Minister Pranab Mukherjee said that the government was taking a number of steps to arrest the volatility in the foreign exchange market and boost the rupee.

Earlier this month, the central bank asked exporters to convert 50% of their foreign exchange holdings into Indian rupees in an attempt to prop up the currency.

It also said that exporters would only be allowed to buy foreign currency after using up all of the foreign exchange holdings in their accounts.

However, these attempts have so far not been able to stem the rupee’s fall.

Source: BBC

Tags assigned to this article:
indian rupee low against dollar

Related Articles

US government accused of unauthorized access to international bank transfers

A hacking group has leaked information on a huge range of security weaknesses, which may have given the US National

EU needs to double the bailout fund, says OECD

The head of the Organisation for Economic Co-operation and Development (OECD) has said that the eurozone needs to double its

Standard Chartered Shares Bouncing Back Up

Shares of Standard Chartered Bank (SCB) price went up by almost 8% following a plummet of 16.43% late on Tuesday.

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.