Rupee dips to new intra-day low of 54.91 to a dollar

Syndicated from IANS | Published on Fri, May 18 2012 17:36 IST | 4 Views | Add comment
Mumbai/Kolkata, May 18

The Indian rupee slumped to a new intra-day low of 54.91 against a dollar Friday even as the Reserve Bank of India assured further intervention in the foreign exchange market to curb the slide.

This is the third consecutive record low of rupee in the last three days. The rupee had hit a low of 54.60 against a dollar Thursday, surpassing previous day's record of 54.52.

Increased demand for the American currency from importers and capital outflows was adding pressure on the Indian currency.

Rupee recovered some ground in the late trading and ended the day at 54.42 against a dollar as compared to the previous day's close at 54.47. The Indian currency hit a record closing low of 54.49 against a dollar Wednesday.

Reserve Bank of India Deputy Governor Subir Gokarn claimed that the steps taken by the central bank have to some extent helped in stabilising the situation.

“The steps we have taken have all contributed in some way to stabilising, and if we need to take more steps, it will be clearly in that direction," Gokarn told reporters in Kolkata Friday.

Gokarn said the rupee was under severe pressure in the last three days largely due to global factors arising out of political uncertainty in Greece.

“In the last two-three days, pressure has been global and the currency has responded to that,” he said.

The Reserve Bank of India (RBI) has taken a series of measures in the last few weeks to curb the rupee slide.

The RBI has asked banks to sell half of the foreign currencies in their accounts. In a bid to attract money from overseas, the RBI has raised interest ceiling that local banks can offer to overseas Indians in forex accounts.

The RBI has opened a direct dollar window for oil companies, which are worst hit because of the weakness in the domestic currency as they have to pay higher money for the same quantum of import.

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