Rupee falls to 71, reaches bottom of the Asia heap

NEW DELHI: After hitting its fresh all-time low of 71-mark against the US dollar in opening trade, the local currency was trading 17 paise down at 70.91.Month-end dollar demand from importers and rising crude oil prices in the international market during the last couple of sessions mainly pressurised the local currency. The rupee on Thursday plunged 15 paise at 70.74 against dollar. 65618064 With a fall of 9.90 per cent, rupee is worst performing currency in Asian on year-to-date basis. It has fallen 3.30 per cent in August so far, most among Asian peers. Oil and toil, Trump and turmoil- trifecta driving the emerging markets right now. Rupee cannot be immune to that. Life used to so simple, when stronger dollar used to mean lower oil prices. Now situation has become demanding for the Rupee, as oil and stronger dollar overseas is eating through all defences of the central bank, according to Kotak Securities.Traders said the Reserve Bank of India was likely sporadically selling dollars through state-run banks to prevent a sudden sharp fall but traders do not expect any major intervention as the fall has been in line with fundamentals, according to a Reuters report.

from The Economic Times https://ift.tt/2N6haN8