Amidst rising crude oil prices, Rupee falls to a lifetime low of 69. This has become a reason for worry as the Indian indices are also slipping away consistently. With the global markets also witnessing a sullen mood due to trade wars, the Indian market is not alone in the downward trend.
Yesterday, the rupee dragged down to its18-months low against the US dollar in the wake of surging global crude oil prices.
Rishabh Maru, a renowned Research Analyst said, “We expect the RBI to intervene aggressively around 68.80 – 68.85 levels to defend the currency. But if 68.86 level is taken out then we may see sharp depreciation in the rupee in coming sessions and it may move towards 70.00 – 70.50 levels immediately,” said Anand Rathi Commodities.”
If asked to identify the crucial reasons for the rupee depreciation, it is the surging crude oil prices, increasing tension between countries on international trade, strengthening of the dollar, and a collective weakening of other currencies are the prime reasons for the depreciated value of rupee lately.
Experts are also noting that when the dollar is strengthening globally, India cannot be remaining immune to the change. In other words, the economy of US primarily affects the economies of other major global nations, so the effect on India’s economy is also inevitable.
The US administration is also toying with different trade approaches and that is another factor which is bound to be escalating the worries for the global market, including that of the Indian markets. There is also an ongoing trade war between China and USA. The US government has implemented policies to curb Chinese investments in US technology firms.
As far as the stats and the currency value history is concerned, the rupee plunged by 37 paise or 0.54 percent on Wednesday to rest at a 19-month low of 68.61 against the US dollar.