The Indian rupee on Tuesday reached to an extended fall of 70 against US dollar and in intra-day trading to 70.10, which happened for the very first time, reported currency dealers. The currency was 69.93 till Monday which recorded its biggest intra-day fall since last five years. It is facing a global currency crisis after the lira Turkish currency was battered.
The rupee is performing worst this year with a depreciation rate of 9 percent against Dollar. The gap is widened due to the rise in international crude oil prices which India has to import and is 80 percent of its total usage. On Monday rupee was disclosed as the worst currency so far after Turkish lira.
Sanjiv Bhasin, executive VP-Markets & corporate Affairs told our sources, “Reflect on the positive side of the development, rupee being the good catalyst in terms of export and also makes up over valuation of rupee versus the fiscal deficit is to calm the people with negative thinking”. He also adds, the fall in rupee has killed the emerging global markets and highlighted by the Turkish crisis.
“RBI will have to keep an inflation check at all levels and they will not be comfortable with it. It has been seen that rupee is defending on all levels”, said the public sector bank officials, on Monday.
Aditi Nayar, principal economist at ICRA said, “Market currency movement is broader in terms of dollar strength and the crude oil prices will drive the outlook for the rupee immediately.
At around 10:50 am in the morning, NIFTY gained half a percent each and equity market were holding high along with Sensex.
Abheek Barua, chief economist at the HDFC Bank said to our sources, “The country is having vulnerability ratios and the assets could lead to the depreciation in a very short run”.