Rupee sinks to all-time low against $: Why is the Indian rupee in a free fall?

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The rupee collapsed to a lifetime low against the US dollar! Twitter gets angry on Indian rupee hitting historic low! Why is the Indian rupee in a free fall? Key Things To Know
The rupee collapsed to a lifetime low against the US dollar! Twitter gets angry on Indian rupee hitting historic low! Why is the Indian rupee in a free fall? Key Things To Know
The rupee hit record low of 71 level to the dollar for the first time ever by falling 26 paise on persistent demand for the US currency amid rising crude prices. The cause is strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.
Here are 6 things to know:

1. At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74.

2. Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar’s strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency. The USD strength against its rival currencies overseas too put pressure on the Rupee, they said.

3. As per reports, buying by importers, mainly oil refiners, keeping in mind the surging crude oil prices and capital outflow affected the local currency.

4. Growing fears about rising inflation in amid high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed on the domestic currency.

5. On Thursday, the rupee slid further by 15 paise to close at a fresh lifetime low of 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.

6. Traders said the Reserve Bank of India was likely sporadically selling dollars through state-run banks to prevent a sudden sharp fall but traders do not expect any major intervention as the fall has been in line with fundamentals.

Twitter Gets Angry on Indian Rupee Hitting Historic Low

The rupee hit record low of 71 level to the dollar for the first time ever.The rupee hit record low of 71 level to the dollar for the first time ever.

Drop your views by using hashtag #RupeeAt71 on twitter and stay connected with Awaaznation for all updates!

Source- NDTV, NEWS18, THE INDIAN EXPRESS

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