Mumbai, May, 16: Amid weak global clue Indian Rupee (INR) has make another all time low by touching 54.66 per dollar. INR was already under pressure of fiscal and current account defict, the global risk aversion has added fuel on it.
The domestic equity market is also falling due to outflow of FII from country. The rupee on Wednesday closed at an all-time low of 54.49 to the dollar, down from Tuesday’s close of 53.79.
The Reserve Bank of India said that it would do its "best possible to curb volatility", on falling rupees today. INR is worst performing currency in Asia and second in BRICS.
The finance minister Pranab Mukherjee on Wednesday said in the parliament that the decline in the currency was influenced by the crisis in the euro zone, and Greece in particular.
This was the biggest fall in five months for the rupees against dollar. Earlier, on last Friday RBI, the apex bank of the country, has intervened by selling dollar through public sector banks.
All the measure taken by RBI has control the pace but could not stop from falling INR further. This was the correction in value of currency due to higher inflation and negative trade balance.
Falling currency will make India a favorable nation for investment and same time it will make our export competitive in global market.