The Indian rupee go down to a record low of 56.57 against one dollar Thursday.
The partly convertible rupee performing low for the 4th sequential session.
The rupee opened up weak at 56.40 against one dollar and achieved a record low of 56.57 about 1.23 p.m. at the Interbank Foreign Exchange market, even further going down from 56.52 set on May 31.
This is the 4th sequential day of fall in the value of the rupee. The value of the rupee has declined sharply after Fitch cut its perspective on India’s sovereign ratings to “negative” from “stable”.
WHY : IBN7 news has recognized some probable reasons.
1. raised demand for the US dollar by oil and gas
2. money outflows from the equity markets.
3. Fitch have cut the India's credit rating after the Standard and Poor’s cut its outlook threatening India’s investment grade ratings.
India have been assigned the lowest investment grade by the both agensies .
4. In its mid-quarterly evaluation of the financial policy released June 18, the Reserve Bank of India even let down the markets by retaining interest rates unrevised.