Intervention by the Reserve Bank through state-owned banks notwithstanding, the Indian rupee on Thursday ended at yet another record low of 50.18/22 lower against the greenback due to exodus of foreign investments and descending equity markets.According to the dealers, heavy dollar selling caused high level of volatility at the interbank foreign exchange (forex) market even as the Indian unit moved widely in a range of 49.88 to 50.60 during the day.
They said unstoppable capital outflows and bearish local stocks were the main factors for the rupee''s downfall. Fears of more portfolio outflows from emerging economies in the light of the current financial crisis, which seems to be blowing out of control, heightened worries that it may pull global economy deeper into recession. There was a virtual meltdown in global equity markets on Thursday after the release of a dismal US economic data and the Federal Reserve lowered the US growth forecast for 2009.
They said unstoppable capital outflows and bearish local stocks were the main factors for the rupee''s downfall. Fears of more portfolio outflows from emerging economies in the light of the current financial crisis, which seems to be blowing out of control, heightened worries that it may pull global economy deeper into recession. There was a virtual meltdown in global equity markets on Thursday after the release of a dismal US economic data and the Federal Reserve lowered the US growth forecast for 2009.
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