India: Rupee continues to lose ground
October 1, 2011
Turmoil in financial markets and diminishing growth prospects are weighing heavily on the Indian rupee (INR) which, by the end of September, traded at 48.9 per USD. The reading represented a 5.9% nominal depreciation over the 46.0 INR per USD observed on the last day of August. In addition, the print marked the lowest level since late April 2009 and followed on a sharp 4.3% monthly decline in the August. On a year-to-date basis, the rupee has depreciated 8.4%. The increased pressure on the exchange rate has yet to dissipate, with the rupee falling slightly below the 50.0 per USD mark on 21 October, where it continues to hover.