Rupee Falls to Record low of Rs 53.29 per US dollar.

MUMBAI: The Indian rupee tumbled by 35 paise to an all-time low of Rs 53.29 per US dollar in early trade on the Interbank Foreign Exchange today on continued demand for the American currency from banks and importers, coupled with news of negative growth in industrial output in October.

Dollar gains against other currencies overseas amid euro zone debt concerns also put pressure on the Indian rupee.

The domestic currency had tumbled by 81 paise to close at a record low of Rs 52.84/85 per dollar in the previous session on strong demand for the American currency and strengthening of the dollar against its rivals overseas.

Meanwhile, the BSE benchmark Sensex fell by 60.98 points, or 0.38 per cent, to 15,809.37 in opening trade today.

The euro also plumbed two-month lows in Asia while the Australian dollar sank closer to parity as rising disappointment over the European Union's summit prompted investors to position for possible downgrades of euro zone sovereign credit ratings.

Rating agencies warned on Monday that last week's EU summit, viewed by some as a last chance to save the euro, did not go far enough to ease immediate concerns about the region's debt markets.

Asian stocks sank on Tuesday and the euro languished near a two-month low as investors took fright at the prospect of mass euro zone sovereign ratings downgrades after the outcome of a "last chance" European Union summit failed to convince markets.

Commodities were also abandoned and the "risk" currencies of big resource producers such as Australia nursed heavy losses as investors huddled in the relative safety of the dollar, lifting both the US currency and Treasuries.

Spot gold slid to a seven-week low on Tuesday, extending a 2.6-percent decline in the previous session, as worries about the euro zone debt crisis continued to grip investors after the euphoria over the European Union summit agreement faded.

Source : economictimes.indiatimes.com