Rupee plummets to 55 a dollar
21 May 2012
The rupee hit a new low of 55 per dollar as the Indian currency extended its free fall into a second week on Monday hammered by heavy demand for the dollar from importers and corporates.
The dollar's rise was also aided by a decline in the value of the European common currency, the euro.
The rupee was trading at 54.96/97 at 4:26 p.m. on the inter-bank foreign exchange markets after hitting a life's low of 55 to the dollar earlier during the trading session.
The Indian currency is now down over 1 per cent from its Friday's close of 54.42/44 a dollar.
The fall also comes after assertions by finance minister Pranab Mukherjee that the government was keeping a close watch on the situation.
"RBI and the finance ministry are keeping vigil. I know there are areas of concern, including the rupee. The way it is depreciating vis-a-vis the dollar is a matter of concern. We are watching the situation, but it is closely linked with the uncertainty in the euro zone. The centre is not sitting idle. We are trying to resolve the issue," he said while speaking to reporters on the sidelines of a programme at the Indian Statistical Institute.
