Indian rupee falls further amid Fed stimulus concerns
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US Dollar v Indian Rupee
LAST UPDATED AT 21 AUG 2013, 07:30


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The Indian rupee has fallen to a new all-time low against the US dollar, amid concerns the Federal Reserve will soon scale back its stimulus measures.

It dropped to 64.13 against the US dollar in early trade on Tuesday.

Foreign investors have been pulling money out of India, as the economy has slowed and the cost of borrowing in dollars has risen.

The Reserve Bank of India (RBI) is rumoured to have intervened to stem the slide in the currency.

The Indian rupee has declined by nearly 16% against the US dollar since May and is Asia's worst performing currency so far this year.

Its further decline on Tuesday was mirrored by falls in markets across other developing markets, particularly in Asia.

On Tuesday, Japan's Nikkei 225 index fell by 2.6%, Hong Kong's Hang Seng was down 2.2% and South Korea's Kospi dropped by 1.6%.

The Indonesian stock market fell 4.9% on Tuesday, pushing it into a formal bear market - meaning it has fallen by more than 20% since its last peak.

Minutes from the the Federal Reserve's latest meeting are due to be published on Wednesday, and may set out more details about the rollback of its "quantitative easing" stimulus programme.

The Fed is expected to start slowing the rate of its purchases of government debts with newly-created money from next month.

BBC News - Indian rupee falls further amid Fed stimulus concerns