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Indian rupee falls to 13-month low against US dollar
December 16, 2014, 6:32 am

File photo of Indian Prime Minister Narendra Modi (3nd L) unveiling the logo of “Make in India” initiative [Xinhua]

File photo of Indian Prime Minister Narendra Modi (3nd L) unveiling the logo of “Make in India” initiative [Xinhua]

The Indian rupee sank below the 63-mark to trade at a new 13-month low of 63.46 against the US dollar in early trade on Tuesday.

Forex dealers said increased capital outflows by foreign funds weighed heavily on the rupee.

The domestic currency had lost 65 paise to close at nearly 11-month low of 62.94 against the US dollar in Monday’s trade following heavy dollar demand from importers.

Data showed India’s trade deficit widened to an 18-month high in November, in part due to surging gold imports.

Meanwhile, the Bombay Stock Exchange benchmark Sensex declined by 273.05 points, or 1.00 per cent, to 27,046.51.

Indian Prime Minister Narendra Modi had said in August this year he’s ready to take unpopular steps to improve the nation’s economy and fiscal health. Modi swept to power in May with the strongest electoral mandate in 30 years.

The Indian economy grew at a much slower pace in the July-September quarter at 5.3 per cent as it tried to weather slowing global demand and a weakened manufacturing sector, government figures said last month. Economic growth had risen up to 5.7 per cent in the April-June quarter.

India fell to 134 of 189 economies in the World Bank’s 2014 index, from 131 last year.

 

TBP and Agencies

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