Indian Rupee hits new record low
Mumbai : The Indian rupee yesterday settled 26 paise lower at 70.995 against the US dollar on account of month-end dollar demand from importers and rising crude oil prices. Market experts believe that the month-end demand for the dollar from oil importers, dollar’s strength against its peers on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.
According to Axis Capital, rupee weakness was largely due to emerging market risk-off sentiment but India’s twin deficits made it more vulnerable. If left unchecked, it presents a dangerous spiral in the worst case scenario ie further depreciation leading to higher inflation. Rushabh Maru, analyst at Anand Rathi said, “Emerging market currencies are under pressure, this has also weighed on the rupee.”
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