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
Modi is silent
BJP is silent
Ministers are silent
His Lackeys are silent
Thug Market Economists are silent
Market Intellectual Editors are silent
People shall NOT be silence NOW!
They shall Speak !
— Rachit Seth (@rachitseth) August 31, 2018
-Is the 8th worst performing EM currency in the last 1 month among 24 EM currencies tracked by Bloomberg
-18% drop in Argentinean Peso, 4% fall in Turkish lira, expectations of wider India current account deficit, 10% rise in brent crude (in last 2 wks) weighs on INR
— Shraddha Babla (@shraddha_babla) August 31, 2018
Now, Govt should stop to give the excuses for continuous falling of Rupee, Because devaluation of Currency is never good for a importer Economy like India. We are not manufacturing hub like China. @RBI #RupeeAt71 #Dollar #ArunJaitley #FridayFeeling
— Anshu Panwar (@panwar_anshu) August 31, 2018
When our FM can support #Demonetisation that too when majority cash has been received by RBI , just wait & watch they are soon going to reveal the benefits of #RupeeAt71 !! May be our defense minister is soon going to address this marvellous gain by #modi govt
— #Wethepeople (@goeloverseas) August 31, 2018
India entered 72nd year of Independence
Rupee chasing it has reached 71 and racing towards 72
— Harmeet_Jolly (@HarmeetJolly1) August 31, 2018
India would be 5th largest economy soon.
-With the currency weaker than Singapore which is not visible on the world map
– With Core inflation hovering over 5%
– With unprecedented corruption and Scams
– With Oil exports cheaper than pricing in the domestic market. #RupeeAt71
— A. H. WANI (@KahwJk) August 31, 2018
#RupeeAt71 Another big achievement of our government. Why can’t I see Supreme Leader NaMo’s complaints about how low the rupee is sinking.
The strategic silence will eventually bit you in the ass @narendramodi.
— Megharag (@megharagmnm) August 31, 2018
Drop your views by using hashtag #RupeeAt71 on twitter and stay connected with Awaaznation for all updates!
Source- NDTV, NEWS18, THE INDIAN EXPRESS