After seeing a stronger opening at 73.87/USD, selloff on the back of steadily rising crude prices along with other factors weighed on the currency.
The rupee on Tuesday ended at a fresh record low of 74.39 per US dollar. The Indian currency had closed at 74.06 per USD on Monday.
After seeing a stronger opening at 73.87/USD, selloff on the back of steadily rising crude prices along with other factors weighed on the currency. The currency hit a fresh record low in the afternoon trade and never really recovered from the low points after that.
Analysts at ABans Group of Companies attribute the fall to higher US bond yields, trade war between US and China along with the political turmoil in Europe.
“Emerging markets currencies are devaluing against dollar. Indian rupee is quoted above 74 is expected to weakened further in coming weeks as rising oil prices are still a threat to current account deficit and higher transport fuel prices will raise inflation in the country,” Abhishek Bansal, Founder and Chairman of ABans Group of Companies said in a statement.
On a year-to-date (YTD) basis, the Indian currency has fallen more than 16 percent. Interestingly, it has fallen from a high point of 63.24/USD In 2018 to an all-time low of 74.39/USD.On the technical charts, Bansal explained, focus is shifting towards Fibonacci extension level around 75.43 and 76.90 if it further consolidates above 74 in near term.