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Indian rupee extends slide to fresh record low

Wednesday, 28 Aug 2013 | 1:14 AM ET
Indian artists call for help to save the sliding rupee.
Stridel | AFP | Getty Images
Indian artists call for help to save the sliding rupee.

The Indian rupee fell more than 3.5 percent to hit a fresh record low of 68.75 to the dollar on Wednesday.

The currency has been hit hard by a sell-off in emerging markets assets which has focused attention on India's wide current account deficit, sluggish economy and the slow pace of long-term structural reforms.

(Read more: Poll: Has the emerging market rout gone too far?)

Fears about U.S. military intervention in Syria have fueled risk aversion in global markets, dealing a further blow to emerging market assets with the latest selling in the rupee coming as Indian stocks opened sharply lower.

(Read more: Syria rattles global markets for second day)

The rupee is the world's worst major performing currency so far this year, slumping around 24 percent.

Indian rupee year-to-date

This compares with a fall of 13 percent in the Indonesian rupiah and 9 percent in the Malaysian ringgit – other Asian currencies that have faced heavy selling pressure in recent days.

(Read more: Rupee slump puts spotlight on India Inc's debt pile)

"What's really happening in these markets is that these countries [India, Indonesia] have had phenomenal growth in recent years and are running currency account deficits that are a source of worry, " Vasu Menon, vice president for wealth management at OCBC Bank in Singapore, said on CNBC's "Capital Connection," talking about the rout in emerging markets.

"At this juncture, you probably want to stay away from India and Indonesia," he added.

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USD/IDR
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USD/MYR
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