Rupee Falls Against Dollar by 50 Paise Ending With Second Lowest
The rupee against dollar fell over 50 paise on Wednesday hitting an intraday second low cost of 68.17 per dollar, second lowest since September 2013 while the country struggles with high deficits and sluggish growth.
The analysts blame global factors for the same, the continued decline the cost of crude oil gives a fear of a hard time with China because of the decline of the cost of the rupee.
Traders say there is a sharp selloff in equity markets hitting a 20-month low today along with the sentiments.
The experts predict that there will be a fall of rupee beyond the fall today low of 68.85 – August 2013 in the days to come.
Madan Sabnavis of Care Ratings shared, “The rupee will struggle as long as the global sentiments exist and will cross the next level of Rs 69 and it can’t be ruled out in the short-term.”
In spite of those, there is a rare chance of currency to succumb to pressure for long owing to India’s strong economic fundamentals, traders say.
Mar Sabnavis said, “As current and trade account shortfall may be expected to be under control unlike in the year 2013, FDI will continue to stay strong, we can expect a return to Rs 66 mark.”
The rupee has declined by 2.28 per cent since first 3 weeks of 2016 but it overpowered emerging markets like Argentina, South Korea, Turkey, Russia, and Mexico, traders say.
Piyush Goyal, Power Minister highlighted the fact about other currencies depreciated more today.
Today the rupee ended with a low of 67.95 per dollar against yesterday’s close of 67.65 being helped by state-owned banks of dollar sales.