Rupee slumps further to 54.60 a dollar
17 May 2012
The rupee slumped deeper to a new all-time low of 54.60 against the US dollar, down from the previous session's low of 54.52 a dollar, despite the Reserve Bank of India's brief intervention in the forex market.
Although RBI's intervention helped stem a steeper fall as the Indian currency continued to nosedive for a second day, dealers said global risk assets remained largely under pressure.
The rupee had gained 20 paise in the morning trade, but as the day progressed, its downward journey continued. Dealers said the bid-ask quotes in the market widened amidst thin liquidity.
The rupee is widely expected to breach the 55-a-dollar level before easing back, if at all.
In an interview with CNBC-TV18, Ashok Gautam of Axis Bank is reported to have said that the rupee will be under pressure for sometime.
While falling gold prices, usual dollar buying and the developments regarding the eurozone are affecting the rupee, Gautam, feels that if the RBI announces a direct dollar window for oil companies, it will take care of the market to a certain extent.
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