India’s rupee slid to a record low against the dollar yesterday as dealers moved into the US currency following robust US jobs data and growing concern about the South Asian nation’s struggling economy.

 

 Indian currency ended the day at a new low of 58.15 to the dollar
The partially convertible Indian currency ended the day at a new low of 58.15 to the dollar yesterday afternoon, sweeping past its previous low of Rs57.32 hit on June 28.

 

Analysts believe the rupee will fall further, with Goenka forecasting that the currency will reach a 59-60 level against the greenback by the end of 2013.

The rupee’s fall is the latest blow to the stuttering growth story of Asia’s third largest economy, which has been beset by sharply slower growth, worsening public finances and political turmoil.

A scramble by oil, other importers and banks to buy dollars to pay for imports in the US currency also weakened the rupee, which depreciated 7% against the dollar in May alone, besides a weakening economic outlook.

via Indian rupee in ‘freefall’, hits record low vs dollar.

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