NEW DELHI: The rupee on Tuesday fell 7 paise to industry at a recent 15-month low of 67.20 in opposition to the USA dollar in early industry. The forex slid on steady selling by means of international budget within the Indian markets in recent weeks, a powerful rally in crude oil costs, rising imports into the rustic and global uncertainty about Iran’s nuclear deal. However, the rupee inched as much as 67.11 within the noon industry.
Here are the standards pulling the rupee down:
* According to Kotak Mahindra Bank president (team treasury) Narayan S A, the rising price of crude oil — the most important import merchandise for India — is directly impacting the strength of the rupee. In addition, international portfolio buyers (FPIs) have internet sold equities and debt price about $3.five billion since April this yr.
* Experts stated, along with the domestic and international elements, political uncertainty around Karnataka polls and rising yields of sovereign bonds globally are also hanging power at the rupee.
* "The emerging market currencies are now playing catch up with some of the excessive losses seen in developed currencies ... Asian currencies have also fallen victim to the latest round of US dollar buying momentum," Jameel Ahmad, Global Head of Currency Strategy & Market Research at FXTM wrote in a note.
* According to ICICI Securities analysts Amit Gupta and Gaurav Shah, rather then the pointy rise in crude oil costs, the recent spike in global yields may be affecting the domestic macro picture to a certain extent. “Benefits of lower crude costs were disappearing as oil seems toning at $65-75 levels. However, we expect maximum negatives to have already been priced in. As such, the (rupee-dollar) pair may consolidate within the vary of 65.80-67.30 consistent with dollar. Also, record foreign exchange reserves with the RBI is also utilised within the event of the following bout of sharp rupee depreciation,” the analysts stated.
* Oil costs eased fairly on Tuesday, a day after hitting 3-1\/2 yr highs, as buyers braced for US President Donald Trump's decision on whether to withdraw the United States from the Iran nuclear deal, a move that would disrupt global oil supply. Global benchmark Brent crude futures stood at $75.64 consistent with barrel, down zero.7 percent, having risen as high as $76.34 on Monday.
(With inputs from agencies)
Here are the standards pulling the rupee down:
* According to Kotak Mahindra Bank president (team treasury) Narayan S A, the rising price of crude oil — the most important import merchandise for India — is directly impacting the strength of the rupee. In addition, international portfolio buyers (FPIs) have internet sold equities and debt price about $3.five billion since April this yr.
* Experts stated, along with the domestic and international elements, political uncertainty around Karnataka polls and rising yields of sovereign bonds globally are also hanging power at the rupee.
* "The emerging market currencies are now playing catch up with some of the excessive losses seen in developed currencies ... Asian currencies have also fallen victim to the latest round of US dollar buying momentum," Jameel Ahmad, Global Head of Currency Strategy & Market Research at FXTM wrote in a note.
* According to ICICI Securities analysts Amit Gupta and Gaurav Shah, rather then the pointy rise in crude oil costs, the recent spike in global yields may be affecting the domestic macro picture to a certain extent. “Benefits of lower crude costs were disappearing as oil seems toning at $65-75 levels. However, we expect maximum negatives to have already been priced in. As such, the (rupee-dollar) pair may consolidate within the vary of 65.80-67.30 consistent with dollar. Also, record foreign exchange reserves with the RBI is also utilised within the event of the following bout of sharp rupee depreciation,” the analysts stated.
* Oil costs eased fairly on Tuesday, a day after hitting 3-1\/2 yr highs, as buyers braced for US President Donald Trump's decision on whether to withdraw the United States from the Iran nuclear deal, a move that would disrupt global oil supply. Global benchmark Brent crude futures stood at $75.64 consistent with barrel, down zero.7 percent, having risen as high as $76.34 on Monday.
(With inputs from agencies)
Rupee at 15-month low: What's causing the downturn
![Rupee at 15-month low: What's causing the downturn]()
Reviewed by Kailash
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May 08, 2018
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