For Quick Alerts
For Daily Alerts

Rupee hits record low of 57.94 against dollar

By Super
Rupee hits record low of 57.94 against dollar
Mumbai/New Delhi, June 10 (IANS) The Indian rupee slumped to a record low of 57.94 against the dollar Monday on escalating worries over current account deficit and firming of the US currency globally. The government, however, said there was no cause for alarm and the currency would soon find its stable level.

The partially convertible rupee tumbled by more than 85 paise and hit the record low of 57.94 against a dollar at around noon trading in Mumbai. The Indian currency had weakened by 22 paise to 57.06 against the dollar Friday.

Worries over widening current account deficit and firming of the dollar against major global currencies, including the Euro and the Japanese Yen, has put pressure on the Indian rupee.

Chief economic advisor in the finance ministry Raghuram Rajan said the government was taking medium-term measures to control current account deficit.

Rajan expressed the hope that the weakness in the Indian currency would be a temporary phenomenon.

"This could be temporary phenomenon. But again, let me reiterate, government is not supportive of weakening of rupee and we would like more stability," he said.

India's current account deficit hit a record high of 6.7 percent of gross domestic product (GDP) in the October-December quarter of 2012-13. A weak rupee will make it difficult for the government to finance such high deficit.

Talking to reporters in the national capital, Economic Affairs Secretary Arvind Mayaram said the panic in the market was "unwarranted".

"I think this will settle down in a while. We should not worry but we are watching the situation closely," Mayaram said.

Read more about: dollar
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more