Rupee hits a new low of 55.42 against dollar
22 May 2012
The rupee, Asia's worst performing currency, plunged deeper today, hitting another lifetime low of 55.42 against the US dollar, despite RBI's measures to stem its steady slide.
The Indian currency tumbled 39 paise to trade at 55.42 against the US currency at the interbank foreign exchange market today amidst rising dollar demand and a firming up of the dollar in overseas markets.
The rupee, which opened higher at Rs54.65 against its previous close of 55.04 a dollar, after the Reserve Bank of India announced steps to curb rupee arbitrage, later dropped under the weight of dollar demand and rising commodity prices, traders said.
Strong dollar demand from importers after the US currency strengthened in overseas markets helped the US currency to firm up further.
The rupee also tacked the stock market, which fell 156.85 points to 16,026.41 pushed down by increased worries over the euro zone crisis.
Call rates on the inter-bank market moved down to 8.10 after touching an intra-day high of 8.25 against Monday's close of 8.24.
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