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Rupee hits 15-month low
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- The rupee plunged below the 67-mark to close at a 15-month low of 67.13 against the US dollar as crude oil prices zoomed past the $75 per barrel level and demand for the dollar surged.
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- This is the lowest level for the rupee since February 8, 2017 when it had ended at 67.19 against the dollar.
- The rupee has been the worst Asian currency performer this year so far against the dollar, losing 5.1% since January.
- The sudden jump in global crude prices rattled the forex market sentiment in a big way stoking concerns over widening trade deficit and higher capital outflows.
- Crude oil jumped to its highest levels since late-2014 on Monday to cross the significant $75 a barrel tag boosted by Venezuela’s deepening economic crisis and a looming decision on whether the United States will re-impose sanctions on Iran.
- Currency dealers said there was ‘huge’ dollar demand from oil importing firms which weighed on the domestic currency. India is a large importer of crude oil; so, if oil prices go further up, it could worsen the fiscal deficit.
- Foreign institutional investors sold Rs630 crore in equity on Monday.
- The yield on the 10 year benchmark government bond eased almost 11 basis points to close at 7.62%, after the Reserve Bank of India announced open market operations for next week.
Source
Indian Express.