Mumbai: The value of the Indian rupee Monday fell below 52 against the US dollar for the first time in over two and a half years as demand for the greenback by importers and investors rose amid a slump in the stock markets.
The partially convertible rupee slumped 1.3 percent to touch a low of 52.02 against the dollar, the lowest level since March 2009.
The India currency is now heading towards the all-time low of 52.19 against the dollar. The record low was touched in March 2009. The Indian currency has weakened almost 15 percent in the last four months.
The increased demand of the dollar from importers, especially oil importers, slump in equities markets and continued concerns over inflationary pressure have led to the depreciation in the value of the Indian currency.
The Indian equities markets 30-share benchmark Sensex fell 2.60 percent to close below the psychological resistance level of 16,000 points mark for the first time in over one and half months.
The depreciation in the value of the rupee will make imports costlier and boost exports.