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Indian rupee falls to historic low against US dollar

Indian rupee
Image caption The rupee is the worst performing of the most-traded Asian currencies

The Indian rupee has hit a new all-time low against the US dollar, after the release of weak economic data.

The Indian currency fell to 53.42 to the dollar on Tuesday, down more than 10% since the start of 2011.

On Monday, Indian monthly factory output showed its first decline in October in more than two years, triggering a sell-off.

Output from factories and mines fell by an annual 5.1%. A fall of only about 0.5% had been expected.

Thomas Harr, a currency strategist at Standard Chartered Bank, said investors were selling the rupee because economic growth was clearly slowing, at a time when inflation remains a problem.

Last week, the Indian government cut its annual growth forecast for the current fiscal year to between 7.25% and 7.75%, from as much as 9% previously.

The rupee remains Asia worst-performing currency, according to Mr Harr.

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