RTTN:Indian Rupee Slides To More Than 11-month Low Against US Dollar
The Indian rupee extended its free fall against the US dollar for the fourth consecutive day on Friday, hitting more than an 11-month low of 56.5655 as downbeat data from the U.S. diminished values of risk-associating emerging market currencies. The rupee is on the path of its all-time low of 57.3350 hit in the middle of the previous year.
Sliding rupee slackened the domestic equities as well, with the Indian shares falling sharply after the RBI Governor D Subbarao warned of upside risks to inflation and said the current account deficit would be a key factor in monetary policy decisions, denting rate cut hopes.
The benchmark Sensex is down 237 points or 1.2 percent to 19,978, while the broader Nifty index is down 78 points or 1.28 percent at 6,046. Meanwhile, investors await March-quarter GDP data due around 11.00 am for further clues on the health of the domestic economy.
Other Asian markets are trading mostly higher as somewhat weaker than expected U.S. economic data on initial jobless claims, pending home sales and GDP growth eased concerns that the Federal Reserve would scale back its stimulus program.
