The Indian rupee continued its slide on Friday 18.11.2011, breaching the Rs. 51-mark - the lowest level touched since March 2009. At 1420 hours, it traded at Rs. 51.30 to the dollar.The currency has depreciated close to 14 per cent over the past 4 months and is not too far away from the all-time low of Rs. 52.18.
Forex dealers said weak stock markets, demand for the greenback from importers and dollar gains against other Asian currencies overseas mainly influenced the rupee sentiment.
Corporates and market commentators have increasingly called for an intervention by the RBI to stop the slide in the currency.
The Indian Rupee dropped 6.7 per cent in November 2011, the worst monthly fall in 16 years .Since July 2011, Indian Rupee shed over 20 per cent in value thus becoming the worst performing currency in Asia.
The Reserve Bank has maintained that it will intervene in the forex markets only in case of volatility. Finance Minister Pranab Mukherjee has also supported RBI's view.
RBI Intervention to Check Rupee Fall
Former RBI Governor C Rangarajan has called for the RBI's intervention to check the depreciation of rupee which has slumped to Rs 51.30 against the US dollar, the lowest in 32 months.
"RBI has the responsibility in terms of reducing exchange rate volatility," Rangarajan said
The rupee slid past 52.2 against the dollar in opening trades on Tuesday Nov 22,2011, dropping to its lowest level in history.At the lowest point, the rupee has shed 16.5 per cent from its 2011 high reached in late July2011.
Rupee At An All-Time Low - Rs 53.40
The Indian rupee tanked by 56 paise to a historic low of Rs 53.40 per US dollar in early trade on Tuesday Dec 13,2011due to persistent demand for the American currency from banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets.The rupee resumed lower at Rs 53.10/11 per dollar on the Interbank Foreign Exchange, as against
its previous close of Rs 52.84/85 per dollar, and dropped further to an all-time low of Rs 53.40
per dollar before quoting at Rs 53.27/28 per dollar at 1030 hours.
Rupee falls to a record low, at 53.54 per dollar - Dec 14,2011
Experts say the worst is still not over. The rupee might touch Rs 55 per US dollar.
Rupee hits new record low, at 54.19 per dollar - Dec 15,2011
Rupee had ended at 53.71/72 on Wednesday after briefly hitting an all-time low of 54, which represented a 3.7 per cent fall this week.The sliding rupee hit another record low on Thursday on heightened concerns that a wave of cuts in the credit ratings of euro zone nations could prompt investors to dump riskier assets. The rupee was trading at 54.19 per US dollar on Thursday.
C Rangarajan, Chairman of the PM's Economic Advisory Council, said India could do little to check the fall in the rupee.Intervention by the RBI is unlikely given India's relatively limited foreign exchange reserves.
Rupee slide halts after RBI intervention - Dec 16,2011
After the market closed on Thursday Dec 15,2011, the RBI sold dollars through public sector banks and announced steps to curb speculation in the foreign exchange market by banks and corporates reduced trading limits for banks in the foreign exchange market, making it difficult for market players to keep speculative positions open for a long time.
The Indian rupee rebounded early on Friday Dec 16,2011 at 9:21 am the rupee was at 52.63 per dollar, 1.8 per cent stronger than its previous close of 53.64/65.
To prevent the rupee from spiralling downwards, the RBI will resort to appropriate measures, including increasing the supply of foreign exchange by expanding market participation and intervening in excessively volatile market conditions, said Dr Subir Gokarn, Deputy Governor of RBI.
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