Rupee hits record low of 69.01 against US dollar.
This was the lowest closing for home currency since November 24, 2016, when it had settled at 68.73.
NEW DELHI: The rupee on Thursday opened at an all-time low of 68.89 against the US dollar NSE 0.16 %. It further lost ground to breach the 69 level for the first time.
Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.
The domestic unit on Wednesday plunged by 37 paise or 0.54 per cent to settle at a 19-month low of 68.61 against the US dollar as growing crude oil prices fanned fears of a widening current account deficit and a spike in inflation.
This was the lowest closing for home currency since November 24, 2016, when it had settled at 68.73.
"We expect the RBI to intervene aggressively around 68.80 - 68.85 levels to defend the currency. But if 68.86 level is taken out then we may see sharp depreciation in the rupee in coming sessions and it may move towards 70.00 - 70.50 levels immediately," said Rushabh Maru – Research Analyst, Anand Rathi Commodities.
Rising crude oil prices, trade war concerns, strength in the dollar index and weakness in the emerging market currencies are key factors for the rupee depreciation. Steady capital outflows and worsening domestic macroeconomic fundamentals are other vital factors for the currency fall, Maru added.
This post is from https://economictimes.indiatimes.com
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