The Indian rupee fell to the lowest level in the history at 55.03. This was its fourth consecutive record low in as many sessions, as the euro retreated from the day's highs and as global risk sentiment remained weak. Traders said corporate dollar demand and oil and defence-related dollar buying also weighed on the currency.
2. Finance minister Pranab Mukherjee expressed concern on Sunday about the steep fall in the value of the rupee and said that the government was not sitting idle.
3. The Indian rupee is one of the weakest currencies in Asia and among emerging markets. This is largely because India is a net importer of goods and services and hence has a high current account deficit. In comparison, other Asian economies like Singapore, South Korea, Taiwan and Malaysia are net exporters and maintain a current account surplus. A current account deficit occurs when a country imports more goods and services than exports.
Source: The NDTV
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