[1]NEW DELHI : The rupee slumped to 62.25 per dollar in morning trade, a level last seen nine-months ago on February 20. The partially convertible rupee traded at 62.13 per dollar versus Friday’s close of 62.03, as of 10 a.m.
The rupee has fallen for five straight weeks now. It dropped nearly 0.5 per cent last week. In November, the rupee declined 1.1 per cent.The rupee is weakening because of global factors. A broad rally in the dollar has led to weakness in nearly all currencies. The euro and the yen are also trading at multi-year lows against the dollar. The dollar topped 119 yen to its highest since July 2007.
Expectations of a cut in interest rates on Tuesday is also weighing on sentiments, analysts say. “Forwards market and the debt markets are discounting a rate cut next week,” said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.
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