Indian Rupee Dropped Below The 49-Mark

Author: Anurag Bhullar

The financial crisis after creating a chaos in the major sectors of the Indian economy has now showing up its signs on the Indian Rupee. On Monday, the Indian Rupee dropped below the 49 level during the intraday trading, its lowest in the last eight years, and finally closing at 48.98 against the American dollar.

The previous lowest closing level of the Indian currency was Rs 48.99 a dollar on June 18, 2002. On Monday, the Indian Rupee in the Interbank Foreign Exchange Market opened the day with Rs 48.74/77 as compared to Rs 48.89 level of Friday close and moved in a range between Rs 48.70 to Rs 49.10.

According to forex exchange dealers the rupee gained some momentum in the early trading on expectations of some capital inflows in the market. And the one percent cut in the repo rate by the Reserve Bank of India added to the sentiments of the Indian rupee in the afternoon trading.

The Indian Rupee also depreciated against the pound sterling by closing the day with Rs 85.11 per pound as compared to its earlier close of Rs 84.54. It also took a dive against the European currency by plunging to Rs 65.70 a euro. But it appreciated further against the Japanese currency by climbing to Rs 48.16 per 100 yen.