Rupee hits another record low of 59.93 against dollar

The Indian rupee slumped to another record low of 59.93 against a dollar Thursday, after the US Federal Reserve signalled an end to its monetary stimulus that would help in further strengthening of the greenback.

The partially convertible rupee opened sharply lower and hit the record low of 59.93 in the morning session at the inter-bank foreign exchange market here, surpassing the previous record of 58.98 hit June 11.

The rupee closed at 58.71 Wednesday.

The Indian currency dropped sharply a day after the US Federal Reserve chairman Ben Bernanke signalled that the Fed would start winding down its stimulus spending later this year. The Fed move is likely to lead to appreciation of the US currency against its major rivals.

Finance Minister P. Chidambaram held a meeting with top officials to discuss the volatility in the currency market.

After the meeting, chief economic advisor in the finance ministry Raghuram Rajan said the government would take necessary action to ensure stability in the currency market.