India: Rupee weakens to two-month low
March 23, 2012
By 23 March, the Indian rupee (INR) was trading at 51.17 INR per USD, which was 4.0% weaker than in the same day of the previous month and marks, in fact, the lowest level in two months. The decline contrasts the 0.6% gain recorded in February. On an annual basis, the INR is now 14.5% weaker than in the same day last year. The rupee has depreciated amid lower risk appetite for emerging market assets following on weak manufacturing data from China and Europe, which have raised fears of a global economic slowdown. In addition, the INR has been hurt in recent weeks as importers have increased their demand for U.S. dollars, prompting speculation that the Reserve Bank of India (RBI) may already be intervening to support the currency.