The Indian rupee declined against the U.S. dollar today and is currently ready to show the biggest weekly drop since the beginning of the year as the slump of the U.S. stock markets was followed by the decline in the Asian markets.
The Bombay Stock Exchange benchmark index (SENSEX) is currently falling by more than 2.5 percent. Such a strong decline in the stocks prompt foreign investment funds to sell their Indian equities and to convert from the rupee the Indian dollar. The rupee is currently approaching its 11-week lowest level against the dollar.
The analysts see a little chance that the rupee will be growing again soon — even the countrys officials are saying that the recession will have a deeper influence on the Indian economy than it was expected earlier. The capital outflows are likely to continue to be the major disadvantage of the INR, which is likely to get many speculative positions traded against it.
USD/INR from 49.73 to 49.87 as of 9:13 GMT today — its highest level since early December. The weekly gain of this currency pair is 1.9 percent.
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