The higher price of crude oil and the falling rupee, coupled with looser fiscal policy, might have inflationary impact
Rupee bleeds on geopolitical and macro stress; breakdown 70
mark to hit lifelow
Forex: The gusty rupee went into a tailspin and
suffered one of its worst stretches in history - crashing
mercilessly to breach the key psychological 70-mark to end at
a life-time low of 70.15 against the resurgent US dollar.
An unprecedented speculative sell-off alongwith heavy
dollar demand from importers sent the domestic unit tumbling
by a steep 132 paise - its biggest weekly fall this year so
far despite government's soothing rhetoric.
The Indian unit collapsed to a life-time low of 70.40,
triggering currency market intervention by the central bank to
defend the beleaguered rupee.
Panic and capitulation overshadowed trading sentiment
as traders and speculators saw no signs that monetary
authorities would
Since the beginning of this year, it has declined by only 9.8%
A sharp surge in trade deficit, which soared to a near five-year high of USD 18 billion, too impacted the rupee
From the end of March 2018 to August 3, India's foreign exchange reserves were down by $21.84 billion to $402.70 billion
To stem the fall in the currency's value, the central banks across the world are raising interest rates, triggered by rising US interest rates and a rising dollar
The rupee hit an all-time low of 70.1 to a US dollar earlier on Tuesday on concerns over Turkey's economic woes
A weaker currency complicates the central bank's job of keeping prices in check as it makes imports costlier
Rupee may fall further if global concerns, including US's protectionist measures against countries such as Turkey and China, persist.
The fall in the broader market was sharper, with two stocks declining for every one advancing on the BSE
On Friday, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar
The Indian rupee has lost more than 6.5 per cent and has hit its lifetime low of 69.10 a dollar in June-end
The rupee drew strength from rallying domestic equities, a dealer said
The RBI raised repo rate by 25 basis points to 6.5 per cent amid inflationary concerns
Policy meetings of the US Federal Reserve (today) and Bank of England (tomorrow), are also keeping investors cautious
The Reserve Bank of India's Monetary Policy Committee (MPC) for the third bi-monthly monetary policy statement will be unveiled on Wednesday
Reserves are still strong enough to cover more than nine months of import needs
Yesterday, the rupee had gained 13 paise to close at a fresh one-week high of 68.66 against the US dollar
Foreign investors have this year pulled $4.4 billion from India, including $2.8 billion in May alone amid rising inflation and oil prices
The rupee rose to 69.12 from Thursday's record closing level of 69.05 at the interbank foreign exchange