盧比

Rupee hit by worst sell-off since 1995

India’s battered rupee endured its worst day on foreign exchange markets in almost two decades, plunging nearly 4 per cent to close just below Rs69 to the dollar – despite interventions from the nation’s central bank.

On Tuesday, Palaniappan Chidambaram, India’s finance minister, had outlined a 10-point scheme to reduce the nation’s current account deficit and restore economic growth.

However, the rupee quickly fell to a record low yesterday morning, before dropping further late in the day, to close at Rs68.85 to the dollar – a decline of 3.8 per cent. It was the biggest one-day percentage fall since October 1995, underlining the rupee’s position as one of the world’s worst performing currencies this year.

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