Indian Rupee breaches 63 Mark against US Dollar

The Indian rupee hit a new low at Rs.63 against US dollar on Tuesday, the biggest single-day fall recorded in more than four months.

The Indian rupee plunged due to the sharp fall in the industrial output.  As per the data released by government, the index of industrial production contracted at 4.2% for the month of October, its worst performance in three years.

The fall in the industrial production sparked concerns about the economic growth that ultimately weigh high on the value of the rupees in the currency market.

The Indian rupee closed at 62.94/95 per dollar on Monday, after it depreciated to its lowest level since 28 January 2014. It was closed at Rs62.29/30 against USD on Friday.

The Reserve Bank of India has been stepping in to guard the value of the Indian rupee and considering the zero inflation in India, it is speculated that the apex bank could cut the interest rates to strengthen the rupee.