NEW DELHI: About a fortnight after breaching the 90 mark, the Indian Rupee is inching towards 91, hitting a fresh all-time low. At the time of filing this report, the Rupee was trading at 90.904 per US dollar, with an intraday high of 90.957, just shy of 91.
So far this year, the Indian currency has depreciated by over 5 percent on a cumulative basis.
Anindya Banerjee, Head Currency and Commodity, Kotak Securities, said, "USDINR is under pressure from continued FPI outflows across both bonds and equities." "There are, however, incremental positives around the India-US trade deal, which could provide intermittent relief to the rupee. Overall, we expect a broad trading range of 89.50-91.00 on spot," Banerjee added.
Manoj Kumar Jain, Director and Head of Currency Research, Prithvi Finmart, also echoed that the Rupee extended its fall due to heavy FPI outflow from the domestic equity markets.
"Record trade deficits and fresh trade tariff of 50% on Indian goods imposed by Mexico is also a reason for fresh fall in the rupee. A rupee slipped to record lower levels against major global currencies. However, weakness in the dollar index and US-India trade deal optimism could support rupee at lower levels. We expect a rupee to remain volatile this week amid volatility in the dollar index, volatility in the domestic equity markets and ahead of the key U.S. and Chinese economic data and a pair could trade in the range of 89.6500-91.4000 this week," Jain added.
Among other factors, Rupee depreciation has driven up Indian gold prices, which have risen 60 percent this year. (ANI)
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