The Indian rupee hit a new all-time low of 60.95 against the U.S. dollar in early trade on Monday surpassing the previous record low of 60.76. The partially convertible currency traded at 60.88 as of 09.05 a.m. against Friday's close of 60.23
Fresh weakness came on better than expected U.S. jobs growth, which increased the likelihood that the Federal Reserve will begin cutting its massive monetary stimulus, known as quantitative easing, as early as September.
Traders fear that cuts in the U.S. bond buying programme will trigger massive selling by foreign investors, which will make the financing of India's high current account deficit difficult.
The rupee fell 1.4 per cent last week and its nine-week losing streak is the longest since the last one ended June 3, 2012.
The Reserve Bank of India was cited selling dollars via state-run banks after the rupee fell to 60.59 on Friday, not far from its life low of 60.76 touched on June 26.
However, the central bank's intervention has not been strong during the current bout of rupee weakness, with Governor D Subbarao's comments on Thursday about the RBI not targeting any particular exchange rate also deepening the uncertainty.
Traders fear that cuts in the U.S. bond buying programme will trigger massive selling by foreign investors, which will make the financing of India's high current account deficit difficult.
The rupee fell 1.4 per cent last week and its nine-week losing streak is the longest since the last one ended June 3, 2012.
The Reserve Bank of India was cited selling dollars via state-run banks after the rupee fell to 60.59 on Friday, not far from its life low of 60.76 touched on June 26.
However, the central bank's intervention has not been strong during the current bout of rupee weakness, with Governor D Subbarao's comments on Thursday about the RBI not targeting any particular exchange rate also deepening the uncertainty.
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