Rupee hits a new 2013 low against the dollar

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, May 22, 2013, 9:18 [IST]

The Indian rupee hit a new 2013 low of 55.46 against the dollar, as worries over the current account deficit weighed on sentiments. The rupee was last trading at 55.45, down 4 paise over Tuesday's closing.

There are worries that the current account deficit may not improve anytime soon, given the substantial gold imports. Last week's trade data has also affected sentiments adversely.

The one positive, however, is that foreign funds continue to net buy shares, which has helped support the rupee in the last few months.

However, there are fears that the currency could fall should foreign funds decide to pull money from the Indian markets.

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