21.4.12

Rupee @ a 3 - month low

The rupee slid to its weakest level in more than three months on Thursday, putting traders on alert for possible intervention from the Reserve Bank of India (RBI) as the outlook on the currency stays bleak. The widening current account deficit — caused in large part by rising oil prices, slowing growth, and fears of a spillover from the festering Eurozone debt crisis — are seen looming large for the rupee.The reduced expectations for further interest rate cuts from the RBI due to inflationary risks are also weighing on the rupee, traders said. The central bank cut the repo rate by an aggressive 50 basis points this week. The rupee closed at 52.15 to the dollar, close to the intraday low of 52.165, a level last seen January 10. 

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