Rupee falls to a new record low in global slump
Indian Rupee closed at a new record low of 53.97 against the U.S. dollar dragged down by risk aversion and consistent demand for dollars from oil importers. Rupee fell around 0.6% while Reserve Bank of India (RBI) is trying its best to stop the falls.
Euro also slumped to a near four-month low of $1.28 due to failure of political parties to form a government in Greece. The Reserve Bank of India attempted to rein in the dollar by changing the norms related to export earners foreign currency accounts and overnight bank limits. The rupee will continue to fall by global capital flows and risk aversion as the euro-zone crisis deepens.