Rupee Breaches 73/$ Mark For The First Time Ever

Rupee Breaches 73/$ Mark For The First Time Ever

At 9.50 am, the rupee stood at 73.65 to a greenback.

Gandhi Wednesday hit out at Prime Minister Narendra Modi questioning his silence over the falling value of the Indian Rupee. "Till when will the 56-inch chest be on "silent mode", he tweeted and asked what happened to the promise of "achche din". Indonesia's central bank governor stressed the need to raise interest rates before the Fed to avoid "drastic" capital outflows in the wake of a heavily flagged Fed hike in December.

India's gold imports are expected to rise further in the fourth quarter, putting the trade balance under more pressure, as investors seek hedges against faltering equities and the weak rupee. The rupee has set all-time lows, bonds are at their weakest since November 2014, and share markets have suffered a sharp correction after hitting record highs in August.

On Wednesday, the rupee declined sharply lower against the USA dollar to close at a record 73.34, amid soaring crude oil prices.

Читайте также: Border Patrol agent's gender reveal party started 47000-acre wildfire

India now imports more than two-thirds of its oil needs. "Respite is unlikely in the short term, as official supportive action (by way of liquidity boost, likely rate hike support on Friday) is being overwhelmed by global risk catalysts", said Radhika Rao, economist at DBS Bank Ltd.

She said: "For bond markets, a 25 bps hike accompanied by a hawkish stance could trigger the 10-year bond yield to rise to 8.25 percent". "Raising the repo rate will increase the real interest rates and help in attracting fresh foreign inflows which will help in containing the rupee".

A rally in crude oil prices is expected to put more pressure on the rupee and it may send it near the 74-mark, said analyst Bhaskar Panda.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related Articles