Record low for Indian rupee

<p>The rupee has hit a new low against the dollar.</p>

The Indian rupee has fallen to a new low against the US dollar for the second time in the last two weeks.

It has dropped in value by around four per cent to another record low of 68.7 to the US dollar, with fears over the Indian economy growing.

India has approved infrastructure projects worth $28.4 billion (£17.7 billion) in a bid to prop up its failing currency.

Vishnu Varathan, an economist with Mizuho, told BBC News that the rupee could fall even further against the US dollar in the coming weeks. He said: "This is unprecedented and we are in uncharted territory for the rupee."

Mr Varathan added that the measures announced by the Indian government have not given confidence to investors and this has hurt the strength of the rupee.

Earlier this month, the rupee fell to 62.49 against the greenback, but Mr Varathan warned this figure could reach 70 in the near future unless India's economy turns the corner soon.

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