The Indian rupee slipped below the 72 mark for the first time ever on Thursday even as US dollar eased a bit in global markets. The local currency has been fallen to more than 12 per cent on a year to date basis thereby making it one of the worst performing currencies amongst the apparent markets.
Previously, rupee resumed higher at 71.65 athwart the previous day’s closing of 71.75 the interbank foreign exchange market. The reports from the news agency said that the Reserve Bank of India was not speckled intermediary after the rupee penetrated the 72 level. It was also suspected of selling dollars previously. The rupee was trading 29 paise down at 72.05 at around 12.45 pm (IST).
The Group Chief Economic Adviser at SBI, Soumya Kanti Ghosh said that the rupee devaluation of 13 per cent in 2018 and around 7 percent since June 2018 when the RBI had started increasing the rates is largely in consonance will doll strengthening against all the currencies.
ALSO READ: Do You Know These Things About Amazon?
“The rupee could not have been immune to such and hence the current depreciation was long overdue and trends in NDF market (rupee at 75 and implied 1 year yield at 7.7 per cent) suggest the pain might not be just over yet.” he added.
Arun Jaitley, the Finance Minister even attributed the fall in rupee to the global factors and said that, there is no need to panic or knee-jerk the reactions. He also said that RBI would be doing whatever is necessary for dealing with the situation. At the same time, the reports also said that the bearish bets that rupee will weaken further rose to their highest level in five years over the past two weeks.
In the last three years, rupee had its worst time in August as the crude rallied on the speculation sanctions on Iran will shrink the global supplies. The crude import bill for the world’s fastest growing oil user surged 76 per cent in the month of July from a year prior to $ 10.2 billion. It even pushed up the trade deficit to $ 18 billion in the 5 years. Our country is said to import nearly 83 per cent of its crude oil requirement.
ALSO READ: Study Tells That, Airport Security Trays Carry More Cold Germs Than Toilets
