Indian rupee hits record low

The Indian rupee dived to its lowest level ever on Monday as investors sought refuge in the dollar after factory output data pointed to a further slowdown in Asia's third-largest economy. Traders said further falls were likely after the partially convertible rupee fell 1.53 percent to close at 52.84/85 to the dollar, its biggest one-day loss since November 21.
The currency, which hit a record low of 52.87 during the session, could hit 54 to the dollar within days, traders said. One-month offshore non-deliverable forward contracts were quoted at 53.24, indicating more short-term weakness in the onshore spot rate. The one-month onshore forward dollar premium was at 33.25 points compared with 31.00 on Friday, while the three-month was at 75 points, down from 77.25. The one-year premium was at 216.50, down from 226.25.