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Journalism of Courage
The rupee plunged to the lowest level in five-and-a-half years on speculation a global stocks slide will encourage investors to take more money out of the market. The rupee declined 0.2 per cent to 48.00 against the dollar, the weakest level since January 2003. The currency fell as low as 48.81 in intraday trading. The rupee may decline to 49 this year and 50 by the end of March, dealers said. The all- time low for the rupee is 49.07, reached in June 2002. The rupee pared losses after the US Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated emergency effort to ease the economic effects of the global financial crisis. The currency dropped for a fourth day, joining declines in eight of Asia8217;s 10 most-active currencies. The rupee market is concerned over the large amount of foreign investments that are being pulled out from India as well as elsewhere, experts said.
