Thursday, 22 August 2013

India’s rupee skids to new record low against dollar


MUMBAI, India: India’s rupee tumbled to a new record low against the dollar on Thursday as uncertainty about the future of the US stimulus programme added to growing fears about the state of the Indian economy. Closely watched minutes from the US Federal Reserve were unable to shed any light on when the bank will begin winding down its bond-buying scheme, which has helped fuel an investment splurge in Asia’s emerging markets. The rupee sank to 65.04 against the dollar in early trade despite suspected interventions by the Reserve Bank of India (RBI) to try to halt the slide this week. The unit is the worst performing currency among key Asian nations this year, losing about a fifth of its value. The RBI and the government have been in crisis management mode for several months to try to stabilise the rupee by announcing measure such as a tightening of liquidity in the markets and hiking short-term interest rates.