The rupee suffered the worst fall in 16 years in November, plunging nearly seven per cent and hitting a record low, as persistent dollar demand from importers and portfolio outflows due to global risk aversion pounded the local unit. The rupee continues to face further depreciation threats on the back of a gaping current account deficit and slowing growth. The worst performer among its Asian peers, the rupee has lost 6.7 per cent during the month, taking its fall so far in 2011 to 14.37 per cent. On Wednesday, it closed at 52.20/21 per dollar, 0.35 per cent weaker than Tuesday's close, recovering from the day's low of 52.42 after China cut its banks' reserve requirement ratio by 50 basis points, which aided global risk appetite.
Source : Business Standard
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