The Indian rupee slumped to register a 13-month low of 63.59 against the US dollar, the weakest level seen since November 13, 2013 when it hit a low of 63.90 against the dollar.
The rupee’s fall was in tandem with losses in emerging market currencies. However, on a relative basis, the rupee remains the best performer among major emerging currencies, with the currency falling just 1.8 per cent.
Rising concerns about the global economy have put equities under pressure while sliding oil prices and a downbeat China factory data weighed on Asian shares.
A clutch of negative data points too hit domestic sentiments. Trade deficit widened to $16.9 billion in November—an 18 month high—compared with under $10 billion a year ago while the contraction in industrial output in October sparked concerns about economic growth.
Foreign investors also have turned sellers to the tune of $ 130 million in the Indian equity market over the last four trading sessions, putting pressure on the rupee.
(Edited by Joby Puthuparampil Johnson) Leave Your Comment