The Rupee tumbles to a Six year low

The Indian rupee fell to its lowest close in more than six years on Friday, after the main stock index tumbled below 10,000 points intensifying worries of capital outflows.The partially convertible rupee dropped to 48.88/89 per dollar, its lowest close since June 25, 2002 and a shade weaker than Thursday’s close of 48.82/83. It fell to a record intraday low of 49.30 last week. The rupee has fallen for 10 weeks in a row. The rupee has lost 19.4 per cent this year, after gaining more than 12 per cent in 2007 when foreign flows into stocks hit a record $17.4 billion. The unit has also been pressured by a widening trade deficit, following high oil prices over the past few months.