The Indian rupee fell below 50 per a dollar today on the signs of an economic slowdown in India, spurring the speculation that the nation’s central bank may intervene to support the currency.
The economy of India, third biggest in Asia, expanded 7.7 percent in the second quarter from a year ago, the slowest growth rate since 2009. Indian Finance Minister Pranab Mukherjee said that the annual economic growth in the first quarter may be lower than initially estimated. Food prices in India jumped 10.6 percent in the week ended October 8 from a year ago, the fastest pace since April. Analysts say that the intervention of the Reserve Bank of India is a definite possibility in case the nation’s currency would continue to weaken.
USD/INR advanced from 49.8750 to 50.0250 today as of 13:31 GMT, while the intraday maximum was 50.3250.
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