Chennai : The slide in the Indian rupee, which Tuesday fell to 13 month low to Rs.63.54 per dollar, is due to aversion to risks in emerging markets and the increase in trade deficit in November, said experts.
The rupee opened at Rs.63.25 per dollar and closed atRs.63.54.
According to experts, the fall is due to risk aversion to emerging markets by the global markets and the higher trade deficit last month added to that sentiment for the Indian currency’s fall.
The Reserve Bank of India’s reference rate for the US dollar is Rs.63.4135 Tuesday as against Rs.62.6529 for Dec 15. India’s trade deficit last month increased by over 76 percent at $16.86 billion, from $9.57 billion in the corresponding month of last year.
On a month-on-month basis, the deficit rose by 26.2 percent from $13.35 billion in October.