The Indian rupee fell to an all-time low on Tuesday as oil refiners and other companies scrambled to buy dollars, with the currency looking increasingly vulnerable to a swelling current account deficit and fears over the global economy and eurozone.
The rupee has skidded nearly 17 percent from a 2011 high reached in late July as risk-averse investors flee emerging markets, increasing the difficulties for a government already struggling with high inflation, slowing economic growth and a widening trade gap. The rupee closed 0.3 percent lower at 52.2950/3050 per dollar, after touching an all-time low of 52.73.
The three-month offshore non-deliverable forward contracts were quoted at 53.26, sharply below the onshore spot rate, suggesting a depreciation of another 1.8 percent from current levels. One NDF trader said the breach of the previous record low of 52.20 low had caused nervousness and people were seeing this as a vicious circle with everyone - including oil importers - jumping in.
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