Rupee hits 56.04 a dollar as RBI, Fitch hit sentiments
18 Jun 2012
The rupee hit lows of over 56 to the dollar on news of RBI holding key rates unchanged Fitch Ratings cutting India's sovereign outlook to "negative" from "stable", giving it a "BBB-", the lowest investment-grade rating for any country.
At 4:23 pm local time the rupee was trading at 56.03/04 against the dollar, down from its previous (Friday) close of 55.39/40 a dollar.
The Indian unit closed the session at 55.9050/9150 against the dollar, still showing a loss of 51 paise to the dollar, State Bank of India data showed.
The rupee could fall further as it is remains vulnerable to any worsening of the global risk environment.
The euro, meanwhile, fell from a one-month high against the dollar over fears that Spain's borrowing costs, which surged to levels seen as unsustainable, could still harm the European common currency.
With rupee nearing its record low of 56.52 to a dollar and the RBI unwilling to relax rates amidst sill stubborn inflation, it is now for the government to steer the economy out of the worsening global risk environment.
