Indian rupee tumbles to new record low

MUMBAI, July 8, 2013 (AFP) – India’s rupee slid to a new record low against the dollar Monday as the greenback was boosted by stronger than expected US jobs numbers. The rupee has fallen nearly 12 percent against the dollar this year, making it the worst performing currency among major Asian economies.

The Reserve Bank is believed to have intervened several times in the market in recent weeks, but governor Duvvuri Subbarao said the priority was managing volatility.

The central bank does not normally comment on whether it has intervened in the market.

The central bank’s governor said last Thursday that the Reserve Bank of India does not have an exchange rate target for the rupee. The currency hit 61.20 rupees to the US unit — moving past its previous low of 60.76 rupees on June 26 — as worries mount that the US Federal Reserve will reduce its stimulus programme that has prompted investor flows into emerging markets.

The Indian currency recovered in afternoon trade amid reports that the central Reserve Bank of India likely sold dollars through state-run banks to prop up the ailing rupee, dealers said.

The currency closed Monday at 60.62 rupe