` touches near record low, recovers to ` 56.43 per dollar

The rupee on Thursday plunged to an all-time low of Rs 56.57 per dollar on the interbank foreign exchange market due to increased capital outflows from equity markets and rising demand from importers amid the US Fed indicating weak growth prospects for the American economy.

Later, it recovered part of the early losses on some 'mild' intervention by the Reserve Bank of India (RBI) and was trading at Rs 56.43 at the time of going to press, showing a fall of 28 paise over Wednesday's close of Rs 56.16

Dealers said the fall was also due to the statement made by the RBI last week that the country may need to sacrifice economic growth to control price gains. To make the situation worse, Fitch Ratings cut India's outlook to 'negative', they added.

Source : Exim News Service - Mumbai, June 21