Rupee hits new record low at 62.35 to dollar and 219 to KD
The carnage in markets continued this morning with the BSE Sensex and Nifty extending losses in morning trade.
At 9:12 am, the BSE Sensex was down 200 points at 18408, while the Nifty broke its April 2013 lows and was down over 70 points at 5440.
The Indian stocks, took a dive off the cliff on Friday as investors resorted to panic selling. The fear that the government was about to make it difficult for them to take money out of the Indian market.
Rupee hits new record low at 62.35
The rupee hit a new record low of 62.35 against the US dollar after closing at 61.65 on Friday. Over the medium -term there is a high probability that the rupee may touch 65 against the Dollar on renewed fears of tapering of quantitative easing in the US.
However, some analysts believe that the rupee may claw back to the 61 level this week on more capital inflows from overseas.
The measures undertaken by the RBI to check speculation and outflows have seen little effect.
On 14 August, the RBI clamped down on Indians' ability to take money out of the country in two ways. The limit on personal remittances has been cut to $75,000 per year, from $200,000 per year. And companies are now barred from spending more than their own book value on direct investments abroad, unless they have specific approval from the central bank.