The Indian rupee opened sharply lower against the U.S dollar on Thursday as emerging assets were hurt after U.S. Federal Reserve Chairman Ben Bernanke signaled possibility to reduce its monthly bond purchases later this year.
Bernanke indicated yesterday that the central bank could begin scaling back its massive asset purchase program later this year, with the goal of ending it entirely in mid-2014 if economic conditions warrant.
Risk aversion amid weak performance in China manufacturing sector also hurt the rupee.
The rupee depreciated to a record low of 59.9255 to the dollar, down 2 percent from Wednesday's close of 58.7205.
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