Rupee closes near all-time low at 68.63 against dollar
27 June 2018
The Indian rupee closed at 68.63 a dollar today, missing its record closing low of 68.825 hit on 28 August 2013 by 0.28 per cent, amidst concerns that higher crude oil prices will worsen India’s current account deficit and accelerate inflation.
At 68.63 a dollar, the Indian currency was down 0.55 per cent from its previous close of 68.26. Rupee opened at 68.42 and touched a 19-month low of 68.67—a level last seen on 30 November 2016.
The currency had fallen as much as 68.8625 intraday on 24 November 2016.
Asian currencies have been under pressure for the last few sessions due to a fall in Chinese yuan in the wake of an emerging trade war with the United States.
The rupee has lost 6.9 per cent against the US currency this year, making it the worst performing Asian currency. The Chinese yuan has depreciated 1.5 per cent in 2018.
Oil prices rose to a one-month high today as markets factored in the risk of a supply crunch. Also, the US has demanded that Iran’s customers halt their oil imports, even as Saudi Arabia vowed
The continued sell-off by foreign investors in Indian equity and debt markets also dampened sentiment. So far this year, foreign investors have sold $7 billion in the equity and debt markets.
Bond yields gained for the fourth session on Wednesday. The 10-year bond yield stood at 7.872 per cent, against its Tuesday’s close of 7.829 per cent. Bond yields and prices move in opposite directions. The benchmark Sensex fell 0.77 per cent, or 272.93 points, to 35,217.11. It has gained 3.4 per cent since the start of this year.