Rupee,India's currency slides to a record low
Due to mounting global stock losses India’s currency,Rupee slide to a record low .
The currency extended a two-week slump on speculation Standard .So Poor’s will soon cut the nation’s debt rating to junk. The Rupee also fell on concern the current-account deficit will widen from a record .This because of the exports decline amid a global economic slump. As a result the MSCI Asia Pacific Index dropped 3 percent after the U.S. Standard & Poor's 500 Index lost 11 percent last month.
The Mumbai -based treasurer ,Sanjay Arya said,
"There’s a lot of pressure on the Rupee as portfolio investments are falling amid the worsening global equity prospects."
According to data compiled by Bloomberg, the Rupee slide1.3 percent to an all-time low of 51.81 per dollar as of 9:55 a.m. in Mumbai
According to data released by the Securities and Exchange Board of India,Funds based abroad sold $1.65 billion more Indian equities than they bought this year, adding to 2008’s record $13.3 billion in net sales .
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S&P last week lowered its outlook on India’s credit rating to negative from stable, saying government spending plans to shield the economy from the global recession and win voter support in elections were "not sustainable."
Tags: Rupee , India's Currency , Sanjay Arya , Global Stock Loss , Dollar , Economic Slump
