Tuesday, December 13, 2011

Rupee hits record low of 53.21 per dollar

The rupee sank to a record low of 53.21 per dollar on Tuesday on worries Europe's debt crisis could exacerbate the growth slowdown in Asia's third-largest economy. At 9:05 am, the partially convertible rupee was at 53.15/18, after falling 1.53 per cent on Monday to 52.84/85. During trade on Monday it had hit 52.87 after India's industrial output index for October plunged 5.1 per cent from the same month a year earlier, far worse than expected. The euro also plumbed two-month lows in Asia while the Australian dollar sank closer to parity as rising disappointment over the European Union's summit prompted investors to position for possible downgrades of euro zone sovereign credit ratings. Rating agencies warned on Monday that last week's EU summit, viewed by some as a last chance to save the euro, did not go far enough to ease immediate concerns about the region's debt markets. Asian stocks sank on Tuesday and the euro languished near a two-month low as investors took fright at the prospect of mass euro zone sovereign ratings downgrades after the outcome of a "last chance" European Union summit failed to convince markets.