INSUBCONTINENT EXCLUSIVE:
The Indian rupee on Friday skidded by 8 paise to trade at 69.03 against the US dollar in opening trade, reported Press Trust of India (PTI)
The fresh fall in Indian currency is due to appreciation of the American currency overseas and sustained foreign capital outflows
According to forex dealers, this is the rupee's third straight slide which is mostly due to demand for the US currency and a lower opening
Thursday, the Indian currency plunged for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise following a
panic demand for the US dollar coupled with savage capital flight worries
The Indian currency stands out as one of the most vulnerable and worst performing currencies in Asia with an almost 8 per cent fall in the
value against the resurgent dollar bull.3
However, economic growth has picked up and India has retained its spot as the fastest growing major economy this year, still the rupee
steady decline since April and
On July 2, the rupee had hit its life-time closing low of 68.80 a dollar
US crude futures are up 13 per cent since June 1
are expected to wane rupee over the next year also
The rupee has been stressed by a sell-off in emerging markets driven by the daily escalation in global trade tensions and on worries of a
commodities, especially oil imports, dragging the current account to a deeper stretch going forward and this is basically negative for
price (MSP) of kharif crops is also expected to contribute to inflationary pressures in the economy and that may prompt Reserve Bank of
India (RBI) to raise interest rates more steeply than expected.8
Asian currencies and foreign exchange markets will likely be driven by how the current trade dynamics play out after the deadline passes for
believe that rupee will continue to stay around current levels
is our forecast for domestic monetary policy
There will be a couple of more rate hikes this year, which is slightly more than expected and that should provide some support to the
But also, we are forecasting a fall in oil prices over the remainder of this year
If that proves to be the case, then that should lead to some strength in the rupee", said Shilan Shah, Senior India Economist, Capital
