Rupee falls for eight straight day

New Delhi/Mumbai : The Indian rupee depreciated against the US dollar for the eighth straight day Wednesday, even as Finance Minister Pranab Mukherjee assured of necessary action to curb the slide.

The rupee closed 0.1 percent down at 52.36 against the dollar Wednesday after appreciating to 51.70 in the intra-day trade on speculation the Reserve Bank of India would intervene.

The Indian rupee had closed at 52.29 against the dollar Tuesday after slumping to a all-time low of 52.73 in the intra-day trade. The earlier record low was 52.19 against dollar.

The value of Indian rupee has depreciated almost 15 percent against the US dollar in the last four months. It has lost 14.6 percent of its value so far this year.

Reacting on the slump, the finance minister said the Indian currency and the equities markets were hit by the uncertainties in the global economies, especially the complicating debt crisis in the Eurozone.

“Unless the Eurozone stabilise, there is a difficulty for Indian markets to stabilise,” Mukherjee told reporters in New Delhi.

Weakness in rupee has badly hit the Indian equities markets.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed 2.27 percent down at 15,699.97 points Wednesday after slumping to the near two-year low of 15,478.69 points in the intra-day.

Mukherjee said weakness in rupee was making investors nervous and leading to the sell-off in the markets.

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