The Indian rupee was trading at Rs 59.70 to the dollar, on worries that the latest statement from Bernanke could see large scale selling by foreign funds in the Indian equity and bond markets, as liquidity is withdrawn in the US. This is likely to aggravate the downfall of the rupee, as dollar demand escalates. The rupee has already been badly hit by a rising current account deficit. The rupee had closed at 58.71 on Wednesday.
Dealers say that the rupee could now breach the 60 mark, posing fresh worries for policy makers.