Indian rupee comes under pressure

July 8, 2013 at 6:31 AM
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NEW DELHI, July 8 (UPI) -- The Indian rupee plunged to a record low of 61.19 to a U.S. dollar Monday on renewed concerns over U.S. monetary easing before making a small recovery.

Foreign exchange experts had expected the rupee, already under severe pressure since May, to weaken further Monday because of concerns last week's optimistic job report and other positive economic news from the United States could result in the U.S. Federal Reserve tapering its stimulus program, thus ending the availability of cheap money.

These concerns, along with India's own economic problems, have been largely responsible for the rupee slide lately as foreign investors sell more of their rupee holdings.

On Friday, the rupee closed at 60.22.

The Press Trust of India news agency, quoting foreign exchange dealers, said Monday's late recovery from the record low of 61.19 to about 61.04 against the dollar may have been due to some dollar selling by public-sector banks at the request of India's central bank.

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