Top

Rupee at a record low, breaches 69 mark

The rupee slipped below the 69-level mark in the intra-day trade to hit a low of 69.09 a dollar before ending the day at 68.79.

MUMBAI: The rupee sank to an all-time low against the US dollar on Thursday as rising crude oil prices and trade tension between major economies continued to put pressure on emerging market currencies and equities. The rupee slipped below the 69-level mark in the intra-day trade to hit a low of 69.09 a dollar before ending the day at 68.79, down 0.23 per cent from its previous sessions close of 68.61.

“Indonesia and India face similar headwinds in times of weak risk-appetite. Investors are clearly sensitive to economies that face twin deficits, which underscore the need for ample financing support,” said Radhika Rao, economist at DBS Bank. Markets participants fear that a rise in global oil prices would put pressure on India’s current account deficit and also stoke domestic inflation that could lead to further tightening of the monetary policy.

The rupee is the worst performing Asian currency in 2018 down 7.4 per cent followed by the Philippine peso and Indonesian rupiah, down 6.7 per and 4.3 per cent respectively. While trade tensions and oil prices have triggered a global risk aversion towards emerging market currencies, Prathamesh Mallya, chief analyst, currency at Angel Broking said US asking India and other countries to stop oil imports from Iran by November 2018 or face sanctions further dented sentiments.

( Source : Deccan Chronicle. )
Next Story