Rupee breaches 69 per dollar for the first time, may lead to high inflation, worsen current account deficit

Login   |  Register Now

Follow us with

Rupee breaches 69 per dollar for the first time, may lead to high inflation, worsen current account deficit

Posted on : Thursday 28th of June 2018

Total 1 News Image

New Delhi: The embattled Indian Rupee plunged by 28 paise to hit an all-time low of 68.89 against the US dollar on Thursday morning on strong month-end dollar demand from importers and banks amid sustained foreign capital outflows. Minutes later,  rupee collapsed to a lifetime low of 69.10 against the US dollar by plunging 49 paise.

Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure. Meanwhile, the benchmark Sensex was down by 90.26 points, or 0.25 percent, at 35,126.85 in early trade today.

On Wednesday, rupee plunged by 37 paise or 0.54 percent 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.

Investors grew more nervous that higher crude oil prices will worsen India's current account deficit and fuel inflation.

After a short break, crude oil prices rebounded after the US asked its allies to end all imports of Iranian oil by a November deadline. Concerns over supply disruptions in Libya and Canada also flared up the prices.

The currency market was nervous after RBI painted a gloomy picture of the banking sector in its bi-annual financial stability report.

Higher inflation, concerns over fiscal deficit and hawkish stance from the RBI have driven up bond yields, hurting bond prices. The 10-year benchmark bond yield shot-up to 7.87 percent from 7.83 percent.

Currency traders were also worried about the future of global trade against the grim backdrop of an escalating trade rhetoric between the US and China.

A massive selloff in domestic equities further added pressure fearing heavy capital outflows.

Courtesy : Zeenews

Disclaimer: The contents or any information provided here is strictly personal and way4indians.com does not hold any responsibility or liability on them. We shall endeavor to upload/publish as many of the comments that are submitted as possible within a reasonable span of time, but we do not guarantee that all comments that are submitted will be uploaded/published. Messages that harass, abuse or threaten other members; have obscene, unlawful, defamatory, libelous, hateful, or otherwise objectionable content; or have spam, commercial or advertising content or links are liable to be removed by the editors. We also reserve the right to edit the comments that do get published. Please do not post any private information unless you want it to be available publicly.

More Articles

Garbage, waste items litter many areas..

A number of residents of Abu Halifa expressed concern about the bad condition of the streets in the area as well as t...

PM to inaugurate Indian Science Con..

Prime Minister Narendra Modi will inaugurate the Indian Science Congress at Jaland...

MoH obtains approval to extend the ..

The Ministry of Health has obtained approval from supervisory authorities to exten...

CSC examines university degrees of all..

The Civil Service Commission (CSC), in cooperation with the Ministry of Higher Education, has formed a team to run a ...

Legendary filmmaker Mrinal Sen passes ..

One of the most prolific filmmakers in the country and the pioneer of new wave cinema in India, Mrinal Sen passed awa...

Happy Holidays: Google wishes the w..

Keeping up with the festive spirit, Google on Tuesday came out with a colourful Ch...

Labor department to directly issue wor..

The Public Authority for Manpower (PAM) issued an administrative circular which allows labor departments to directly ...

MoE finalizing list of expat workers t..

The Administrative Sector at the Ministry of Education is finalizing the list of expatriate employees whose service w...

819 cameras to monitor flow of traf..

Sicora, a company specialized in video monitoring systems, has provided Kuwait wit...

Leadership must own up to defeat al..

"Success has many fathers but failure is an orphan, as when there is success,...

‘I’ll definitely contest in the..

Actor-turned-politician Kamal Haasan, who founded his own party Makkal Needhi Maia...

His Highness Crown Prince attends Jana..

Representing His Highness the Amir Sheikh Sabah Al-Ahmad Al- Jaber Al-Sabah, His Highness the Crown Prince Sheikh Naw...

Advertisements

Copyright © 2012-2019, All rights Reserved   |  www.way4indians.com  |  This Logo is a trademark of Way4Indians. For Enquires, please contact : info@way4indians.com