Indian Rupee Hits New Low Against The Dollar

The Indian unit, which has depreciated more than 10 percent since the start of April, fell to a record low of 57.325 before clawing back to 57.24, compared with the previous record low of 56.55 a day earlier.

In a bid to curb the currency’s freefall, India’s oil secretary said the central bank had asked oil companies to buy half of their dollar demand from public sector banks, the Press Trust of India news agency reported. The rupee has been one of the hardest-hit currencies in Asia, reflecting investor concerns about India’s economy, which is being buffeted by high inflation and slow growth.

The economy grew just 5.3 percent in January to March, its slowest quarterly expansion in nine years. The latest downward spiral in the rupee came after Moody’s on Thursday downgraded the credit ratings of 15 of the world’s largest financial institutions, including Goldman Sachs and Barclays, citing risk exposure.”Risk appetite is reducing at a very fast pace,” said D.K. Joshi, chief economist with ratings agency Crisil.