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Rupee Slides to a 16-Month Low Against the Dollar


The rupee fell today against the US dollar in volatile trade conditions. It was at 67.84 against the dollar (3:03 pm) in afternoon trade.

It had regained from its fall at the day's high of 67.48 per dollar before declining again. The stock markets too were volatile today owing to Karnataka election results.

Rupee Slides to a 16-Month Low Against the Dollar

Amid rising crude oil prices, the domestic currency is fallen as much as 5 percent against the dollar this year. India's high dependency on imports (over 80 percent) for its fuel demand affects inflation control and hampers the current account deficit, other than weakening the rupee.

The Central Statistics Office (CSO) released data on Monday that showed an increase in CPI (Consumer Price Index) and WPI (Wholesale Price Index) for the month of April 2018.

Outflows from domestic capital markets through foreign investors has also hurt the Indian currency's value. According to data calculated by forex advisory firm IFA Global, foreign portfolio investors have sold a net of $1.6 billion and $650 million in debt and equity respectively.

Easing trade tensions abroad have also strengthened the American currency as it gained by 0.2 percent to 92.792 and was higher compared to major global currencies. It also pushed the US bond yields higher.

Read more about: rupee
Story first published: Tuesday, May 15, 2018, 15:25 [IST]
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