ANI
28 Jun 2022, 12:33 GMT+10
New Delhi [India], June 28 (ANI): Indian currency rupee on Tuesday hit a fresh all-time low of 78.59 per US dollar, primarily due to a sell-off in equities, rising inflationary pressures, and elevated global crude oil prices.
International crude oil prices have been above the psychologically crucial $100 per barrel mark since February, and inflation is at a multi-decadal high in advanced countries. Inflation in India, too, is above the permissible tolerance band at the moment.
"Indian Rupee spot notched a fresh record low of 78.5963 against dollar index on June 28, owing to continued sell-off in equity markets coupled with elevated crude oil prices, which might weigh down on the net importer's fiscal balance," said Jigar Trivedi - Research Analyst- CommoditiesCurrencies Fundamental, Anand Rathi Shares and Stock Brokers.
Rising crude oil prices once again bring back concerns on the inflation front, which might prompt the central banks to be very aggressive in hiking rates and thereby inducing a recession, said Trivedi.
"Going forward, we expect the rupee spot to depreciate towards 80/81 levels by the year-end as twin deficits (fiscal deficit and current account deficit) add to pressure on the emerging market currency," added Trivedi.
Back home in India, foreign portfolio investors pulling out funds from the country for past consecutive eighth-to-nine months are also likely to have put pressure on the domestic currency, analysts had said.
Typically, the Reserve Bank of India intervenes in the market through liquidity management, including the selling of dollars, with a view to preventing a steep depreciation in the rupee.
India's foreign exchange (forex) reserves slumped by $5.87 billion to $590.588 billion for the week that ended on June 17.
The country's forex reserves had dropped for the third consecutive week. It has slumped by $10.785 billion in the past three weeks under review. (ANI)Get a daily dose of Tennis Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tennis Times.
More Information(Photo credit: Lon Horwedel-Imagn Images) The Detroit Pistons saw their longest winning streak in 17 years end on Friday night. They...
(Photo credit: Geoff Burke-Imagn Images) The St. Louis Blues are finally seeing a payoff for their progress made since Jim Montgomery...
(Photo credit: Winslow Townson-Imagn Images) Donovan Mitchell scored 41 points, including 26 in the second half, as the visiting...
(250301) -- ACAPULCO, March 1, 2025 (Xinhua) -- Nakashima Brandon of the United States hits a return during the singles semifinal match...
(Photo credit: Kevin Jairaj-Imagn Images) The Washington Wizards and Charlotte Hornets meet Saturday bearing the load of disappointing...
New Delhi [India], March 1 (ANI): Elevating the spirit of sports in the national capital, Indian sport shooter Deepak Kumar and TV...
DUBLIN, Ireland: Dublin has unveiled a new 5.5 million euro cycle track along the south quays, enhancing safety and accessibility for...
DUBAI, UAE - Fuelre4m has announced a new partnership with one of the UAE's largest yacht operators aimed at improving fuel efficiency...
CAIRO — Observant Muslims the world over will soon be united in a ritual of daily fasting from dawn to sunset as the Islamic holy...
BEIJING, March 1 (Xinhua) -- A selection of the best press photos from Xinhua. A drone photo taken on Feb. 27, 2025 shows the construction...
BEIJING, March 1 (Xinhua) -- In a significant move to open its telecommunication sector further, China has approved 13 foreign-invested...
(Photo credit: Jeff Romance / USA TODAY NETWORK via Imagn Images) Jake Knapp followed his opening-round 59 with a far more modest,...