Indian rupee crosses 40 barrier to the dollar<\/p>\n
BOMBAY (AFP): The Indian currency hit a record low here
\nWednesday, crashing through the psychological barrier of 40
\nrupees to the dollar for the first time.<\/p>\n
Dealers said it closed at 40.90 against the greenback after
\ncrashing to 40. 15 half an hour into the day's trading.<\/p>\n
The unit had plummeted to a close of 39.91 against the dollar
\non Tuesday, its previous record low.<\/p>\n
The currency, despite active intervention by India's central
\nbank, has fallen more than 12 percent since August, when it stood
\nat 35.70.<\/p>\n
Pradeep Sharma, at the foreign exchange and travel house
\nThomas Cook, said it would weaken further unless the central
\nReserve Bank of India "sold dollars heavily to support the
\ncurrency."<\/p>\n
He said there was a lot of demand from Indian importers for
\ndollars.<\/p>\n
Sharma added the currency had only strengthened because
\n"people sold dollars to square their positions in line with the
\ncentral bank rule that there should be no open positions at the
\nend of the day.<\/p>\n
"I expect the rupee to fall further on Thursday."<\/p>\n
Analysts say turmoil in neighboring Asian markets and
\npolitical uncertainty in India have led to the currency's
\nweakness.<\/p>",
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