Economy

Indian rupee collapses to 73.77 against United States dollars

Indian rupee collapses to 73.77 against United States dollars”

With the rupee plunging to a historic low, the government and the RBI swung into action to slow down a further fall of the battered Indian currency as global economic conditions continued to deteriorate and fears of higher inflation increased. As such, short-term move in oil prices remain triggers for a move in the rupee, it added.

The rupee collapsed to a fresh low of 73.81 as the dollar reached a 11-month high against the yen and stood tall against other peers on upbeat USA data and comments from Federal Reserve Chairman Jerome Powell that were seen as hawkish.

So far this year, the rupee has declined over 12% against the U.S. dollar.

The bank are predicted to act to tackle rising United States interest rates, capital outflows from emerging markets and India's weakening balance of payments and current account deficit.

On Wednesday the rupee slipped to a low of 73.42 per dollar as crude oil prices breached the 85 US dollars per barrel mark, leading to huge outflows of cash.

Mumbai:The rupee fell past the 73 mark and bond yields climbed over 12 basis points on Wednesday after crude oil surged to almost $85 per barrel, a near four-year high.

The 10-year gilt yield closed at 8.112%, up over 12 basis points from its previous close of 7.988%.

Mr Khoon Goh, head of Asia research at ANZ Banking Group in Singapore, said the mix of strong USA data and the Fed chair's comments bumped up the dollar and USA bond yields, putting downward pressure on Asian currencies.

DBS economist Radhika Rao expects a rate hike, along with the RBI shifting its stance to "hawkish" from "neutral".

It comes just one day before the Indian central bank is expected to raise rates on Friday to prop-up the rupee.

Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices that crossed the Dollars 85 per barrel.



Like this

loading...
loading...

Latest


04 October 2018
Champions League: I’m not allowed to talk, says Pogba after Valencia match
Valencia insisted he is "fully supportive" of Mourinho after appearing to back calls for the under-fire manager to leave. Tuesday's stalemate at Old Trafford was their fourth consecutive match without a win.

04 October 2018
Lilo & Stitch Live-Action Remake Planned at Disney
It's not clear yet whether this is going to theaters or will be held in reserve for Disney's upcoming streaming behemoth. Little does she know, he's actually an alien who crash-landed on Earth after being exiled from his home planet.

04 October 2018
Messi is the best ever - Coutinho hails Barcelona star
Once again, an improved Spurs fought back with Erik Lamela making it 3-2 courtesy of a deflected effort from outside the box. In a dramatic second half, Tottenham's Harry Kane reduced the deficit before the majestic Messi added Barcelona's third.

04 October 2018
Russia, India to sign $5 billion deal on S-400s this week
The website, Bellingcat, said the colonel had been made "Hero of the Russian Federation" by President Putin himself in 2014. The reports suggest both the countries will also be signing space sector deal and energy deals.

04 October 2018
Breaking Steve Bruce sacked by Aston Villa
Fans had become increasingly frustrated with boring football that Bruce's team had been playing, without results to justify it. Purslow will now begin the hunt for a new manager, with Villa still to appoint their new sporting director.

04 October 2018
Lethal Weapon: Damon Wayans Announces He's Leaving the Show
Following the news that Damon Wayans is exiting Lethal Weapon , many fans might be wondering if the series will be canceled. Crawford later refuted the allegations about his behavior in an expletive riddled podcast appearance.

04 October 2018
Furyk: Europe outplayed us, but I'm proud of USA
Three Americans, meanwhile, went winless: Woods (0-4), Mickelson (0-2) and DeChambeau (0-3). In May, he won the BMW PGA Championship - the European Tour's flagship event at Wentworth.

04 October 2018
US, Israel Uneasy As Russia Upgrades Syria's Missile System
Israel voiced regret afterward, but blamed Syrian incompetence for the incident and said it would continue bombing Iranian military targets in Syria.

03 October 2018
Sarah Sanders defends Trump's comments about Christine Blasey Ford
Opposition to Kavanaugh grew 4 percentage points after the hearing, apparently driven by people who previously were undecided. It comes as Democrats have questioned whether he has been forthright about his drinking habits in his youth.

03 October 2018
Tour firms up in arms over Maya Bay closure
While Maya Bay is out of bounds to tourists, the DNP is drawing up a sustainable tourism plan. Maya bay was closed in June due to environmental concerns.