Mumbai: In a choppy week’s trade, the Indian currency weakened against the US dollar to close above the 71 a dollar mark on Friday, owing to a sharp rise in crude oil prices, turmoil in the equity markets and uncertainty around the US-China trade relations. In what could translate into further trouble for the domestic currency, analysts see an upward move of 6 to 7 per cent in the Brent crude prices in the coming week.
The rupee lost heavily towards the end of the week - over 70 paise in the last three trading session - as traders reacted to the sanction on Venezuela and production cut by OPEC and Saudi Arabia. Sajal Gupta, Head Fx & Rates Edelweiss, said “technically ... crude now looks set for another 6-7 per cent rise” which would mean that the rupee was likely to depreciate further in the coming sessions.
“And if Rs 71.80 per dollar is broken, we can head towards Rs 72.50 mark.” Among other factors impacting the currency, Gupta said, with crude and dollar index giving breakout, rupee would remain under pressure. Trade deficit data released on Friday post market was also not very encouraging with monthly deficit touching almost 15 billion dollars. (IANS)
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