Tuesday, December 13, 2011

Rupee hits an all-time low of 52.85 against $

MUMBAI: The Indian rupee on Monday hit its lifetime low of 52.84/85 against the dollar as demand for the US currency soared amid signs of FIIs pulling out money in the wake negative growth in industrial production in October. Forex dealers said a slew of measures like plunging stock markets, dollar gaining strength against its rivals in the overseas market weighed against the local currency which lost a whopping 81 paise against the Greenback on Monday.

"As FIIs pulled out from markets due to weak IIP numbers, the rupee has seen such a big fall. Also, a weakening euro has added to the pressure," head of treasury operation of IDBI Bank, N S Venkatesh said. Analysts said existing economic woes were compounded by decline in industrial output which dent the confidence of investors.

At the forex market, the rupee opened lower at 52.09/10 a dollar and dropped further to finish at all-time record low at 52.84/85, down 81 paise, or 1.56% from its previous close. Venkatesh said said buying pressure from importers for their unhedged exposure also supported Monday's trend.

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