The Indian rupee hit a record low for the second consecutive day Friday and slumped below the psychological resistance level of 57 against a dollar for the first time on increased demands for the American currency by oil and gold importers.
The partially convertible rupee opened weak and hit a record low of 57.30 against a dollar in afternoon trading. The rupee had closed at 56.30 against a dollar after hitting a record low of 56.57 in the intra-day trade.
This is the fifth consecutive day of slump in the value of rupee. The value of rupee has declined sharply since Fitch cut its outlook on India's sovereign ratings to "negative" from "stable".
Fitch has become the second credit ratings agency after Standard and Poor's to cut its outlook threatening India's investment grade ratings. Both these agencies assign India the lowest investment grade.
In its mid-quarterly review of the monetary policy announced June 18, the Reserve Bank of India also disappointed the markets by keeping interest rates unchanged.
RBI Governor D. Subbarao said early this week that the central bank would intervene in the currency markets only to contain volatility of rupee.
Coca Cola, the world's largest soft drink maker, today said it won't slow down its USD 5 billion investment plans in India.
The resilient Indian IT industry is building next generation enterprises to leverage the emerging opportunities in cloud computing and mobility space worldwide.
Nissan unveiled a revamped version of its sports utility vehicle- Terrano in Mumbai on Tuesday.
Maruti has launched an upmarket looking Wagon R, called the Stingray (no relevance to Corvette Stingray or any other legendary car with that name plate) in India at Rs 4.09 lakh, ex-Delhi.
Luxury automobile makers Rolls Royce launched their latest offering - the Rolls Royce Wraith - in India on Monday
To summarise the collective commentary on why the rupee is falling, the immediate triggers are the imposition of capital controls and the hike in import duties on 'non-essentials' like gold and flat screen TVs.
Reserve Bank of India (RBI) on Tuesday announced a slew of measures, including Rs 8,000 crore bond buyback, to ease liquidity and ensure adequate credit flow to the productive sectors of the economy.