Rupee value fallen down, biggest fall in a decade

The rupee value fallen as if never before in a decade on Tuesday, the main reason being is hit by risk aversion and banks arbitraging a weaker offshore rate, although suspected central bank intervention stopped the slide just short of 47 per dollar. The rupee value has fallen to 46.89/90 per dollar, off a trough of 46.99 which was its lowest since July 24, 2006. The rupee fell 1.8% from its close of 46.05/06 on Monday, its biggest fall since May 14, 1998, when the currency fell 2 percent after sanctions were imposed on India for its nuclear testing. Dealers said the central bank was selling dollars to halt the rupee's sharp decline, but sales were offset by demand for the US currency.Traders said that broad strength in the dollar versus other currencies overseas was also hurting sentiment on the rupee.