Rupee sinks below 61 against dollar: PM to meet captains of industry

New Delhi, 8 July 2013

The Indian rupee hit yet another record low on Monday, slipping past the level of 61 against a dollar.

The partially convertible rupee opened weak and slumped to a record low sao far of 61.21 against a dollar at the inter-bank foreign exchange market in Mumbai, surpassing its previous record low of 60.76 touched on June 26.

It was trading at 60.94 at around 1.15 p.m. against its Friday closing level of 60.22 to a dollar.

The Indian rupee has lost more than 10 percent of its value this year, the worst fall among the major emerging economy’s currencies.

Widening current account deficit and weak economic growth coupled with broad strengthening in the value of US dollar are the main reasons for weakness in the Indian currency.

India’s current account deficit hit a record 4.8 percent of gross domestic product (GDP) in the financial year ended March 31, 2013, while economic growth slumped to a five percent, the lowest in a decade.

PM to meet captains of Industry

The Prime Minister will meet the captains of Industry on 29 July to review steps to revive the economy. The discussion will cover

(i) Measures to correct the Current Account Deficit

(ii) Measures to revive industrial growth

(iii) Depreciation of the Rupee and its impact on trade and industry

(iv) Skill development and ways of accelerating it

(v) Development of industrial corridors : the Delhi – Mumbai Industrial Corridor (DMIC), the Chennai-Bangalore Industrial Corridor (CBIC), and the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC).