The Indian rupee fell today, heading to a record low, as capital outflows from the country led to concerns that the huge current-account deficit may widen even more.
Overseas funds sold a net $7.1 billion of Indian assets as investors were worried about possible tampering of stimulus by the Federal Reserve. Today’s positive employment data from the United States reinforced such worries. India’s current-account shortage reached the record 4.8 percent of gross domestic product in the first quarter of this year.
USD/INR rose from 59.5555 to 60.2250 as of 17:37 GMT today and its daily maximum was at 60.4515. The currency pair reach the record high of 60.7650 on June 26.
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