Rupee Vs Dollar: The Indian National Rupee (INR) has slipped to its 15-month low of 75.67 per dollar, amid rising inflation, rising crude oil prices and fears of a stronger US dollar (USD). According to currency experts, crude oil prices have hit a 3-year high and we have no option but to continue importing crude, which is highly negative for the national currency against major foreign currencies including the dollar. He said that the rupee may go further down and touch the level of Rs 77 per dollar in the near future.
Speaking on the movement of INR to USD in the Forex market; Kainat Chainwala – Fundamental Research Analyst at Anand Rathi Shares & Stock Brokers Currencies said, “Indian rupee weakened to 15-month low in the spot market this week on fears of increased inflation amid rising crude oil prices and strengthening dollar. Levels fell to 75.67. Domestic equity hit all-time highs also could not provide a cushion. India’s CPI fell to a five-month low of 4.35 per cent in September, with RBI’s comfort zone of 2 per cent to 6 per cent Provides scope for RBI to continue its accommodative policy stance within the framework of achieving sustainable economic recovery.”
Why the Indian Rupee may not come out of the bear’s grip in the short term; Anuj Gupta, Vice President, Commodity & Currency Trade, IIFL Securities said, “Rupee is trading at 15-month low due to heavy import basket. Crude oil imports, which are trading at 3-year high, palm Oil prices and still. Commencement of coal imports – are some of the major factors that have negatively affected the Indian rupee. Higher energy prices put pressure on the rupee as commodity prices are rising leading to inflation. “
Expecting further depreciation in rupee against dollar, Anuj Gupta of IIFL Securities said, “We are expecting it to further depreciate to test 76 to 77 levels very soon.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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