Rupee falls for ninth week,closes in on record low

However,the RBIs intervention has not been strong during the current bout of rupee weakness,with Governor Duvvuri Subbaraos comments on Thursday about the RBI not targeting any particular exchange rate also deepening the uncertainty.

Markets are awaiting potential measures from the government to open up more sectors for foreign investment in a bid to narrow a record high current account deficit that has now helped send the rupee to a ninth consecutive weekly fall.

The rupees outlook is still negative. The government is not coming up with any strong response. Oil prices are going up,which may widen the current account deficit, said Subramanian Sharma,director at Greenback Forex. The rupee fell 1.4 per cent for the week and its nine-week losing streak is the longest since the last one ended June 3,2012. Analysts feel that the government and central bank will be forced to unveil new steps if the rupee does not stop its slide. An overseas bond issue targeted at non-resident Indians is one of the options the government has,while the central bank can again open a dollar window for oil refiners to take a big chunk of dollar demand out of the market.

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