Indian Rupee hits fresh record low of 69.61 per Dollars

Indian Rupee hits fresh record low of 69.61 per Dollars

Indian Rupee hits fresh record low of 69.61 per Dollars

Rupee recovered from initial dip against U.S. dollar.

The Indian rupee on Monday declined to 69.61 per dollar during the day after opening at a record low of 69.47.

In the current financial year, which began on April 1, the rupee has depreciated around 6.7% against the United States dollar.

However, the dollar's strength against some currencies overseas capped the gains of the domestic unit.

However, Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward.

"A slowing Chinese economy, tightening monetary policy and an escalating trade war are some of the main reasons for this turmoil into currency markets as sentiments towards emerging markets are worsening".

As further evidence of contagion risks in emerging markets, an FT report noted JP Morgan's Emerging Market foreign exchange index fell by 1.3% yesterday to a record low. The RBI has been intervening very selectively in the market.

Meanwhile, SBI chairman Rajnish Kumar said all currencies have weakened against the dollar, but the Indian currency has not weakened very much in comparison to other currencies.

Salil Datar, CEO and executive director, Essel Finance VKC Forex, said, "The current drop in Rupee is mainly due to the crisis in Turkey". The rupee had settled at 68.84 against the U.S. dollar last Friday. There is lot of panic demand seen from importers...the next short-term resistance is seen at 70.50, while the important resistance to watch out for the market will be 71 per dollar. He opined that on a medium term basis, the rupee will need to depreciate further to keep up with the inflation differentials with other trading partners.

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