INR Reaches Record Low vs. USD

The Indian rupee reached the record low price versus the US dollar yesterday as the nation’s industrial production declined and Europe deterred investors from buying riskier currencies of emerging markets.
The Central Statistical Office reported that India’s factory output declined 5.1 percent in October from a year ago, much more than analysts estimated before the report (0.7 percent). That was the first decline since June 2009. There was information that the Reserve Bank of India, while the central bank’s representative said that the bank “does not comment on day-to-day market movements”.
The rupee also was down as the crisis in Europe damped risk appetite. The European leaders had an agreement on some measures to deal with the problem, but that wasn’t enough to encourage Forex traders. The prospects for reducing the credit ratings of the eurozone countries by the rating agencies didn’t helped to restore confidence of the market participants either.
USD/INR traded near its opening level of 52.8350 today as of 3:16 GMT, following earlier drop to 52.5600. The currency pair reached the record high of 52.8400 yesterday. EUR/INR rose from its opening of 69.6767 to 69.7033 today.

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