INR

93.771

United States Dollar

India's inflation has come off a peak but is still high, Bloomberg quoted the Reserve Bank of India Governor D. Subbarao as saying, which led to pressure on the currency.

Rising tensions along the border with Pakistan also led to a drop in the rupee. The rupee is expected to remain vulnerable to sensitive news given that fundamentally the currency is still weak, given the huge current account deficit.

Markets are worried that should the inflow from foreign funds into Indian equities dry up there cold be a sharp drop in the rupee.

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