The Indian rupee weakened to a fresh record low against the dollar on Wednesday, as foreign investors weighed on a slowdown in the Indian economy and investors took a dim view of the government’s fiscal consolidation measures.
The rupee dropped to 56.60 to the dollar at 8:37 a.m. local time (0637 GMT) from a previous high of 62.50, according to the New York-based foreign exchange exchange benchmark.
The benchmark is based on data from the Reserve Bank of India (RBI).
The RBI said on Wednesday that foreign currency reserves were $8 billion ($5.7 billion) at the end of October, down from $9.7 trillion at the same time in October last year.
India’s foreign currency reserve had increased to $12.5 billion at the close of trading.
The Reserve Bank’s data is not final and can be subject to changes and corrections.
Foreign investors have also expressed concerns about the government spending on infrastructure, including roads, ports and airports, the economy, energy and water.
The government said on Thursday it is in discussions with the World Bank and other financial institutions to raise funds for infrastructure projects.
The Indian economy is expected to grow 7.7% this year.