Twitter

Facebook

Youtube

RSS

Hindi News | Samay | UP/Uttarakhand | MP/Chhattisgarh | Bihar/Jharkhand | Rajasthan | Aalami Samay
  Rashtriya Sahara Roznama Sahara
Inflationary fears: Rupee hits record low at over 77 to US Dollar
Last Updated : 07 Mar 2022 05:33:17 PM IST

 

High commodity prices as well as outflow of foreign funds from equity markets dragged Indian rupee to a new record low against the US Dollar.

Accordingly, rising prices of crude oil along with other commodities triggered by the Russia-Ukraine war had kept a weak pressure on the rupee.
 
The Ukraine crisis pushed Brent crude oil price to $130 a barrel on Monday.
 
Besides, the trend is expected to trigger an inflationary trend and ultimately a reversal in monetary policy.
 
Furthermore, it has accelerated FIIs' selling in the Indian equity market.
 
Consequently, the Indian rupee touched a new record low of 77.02 to a USD on Monday's trade session.
 
"Higher inflation, rising crude oil and commodity prices along with outflow of FIIs from the equity market are the major reasons for rupee depreciation," said IIFL Securities VP, Research, Anuj Gupta.
 
"We expect it to test 77.50 to 78 levels."
 
According to Kshitij Purohit Lead Commodities and Currencies, CapitalVia Global Research: "India's traditionally non-interventionist central bank may allow further depreciation of Asia's worst-performing currency since the start of the Ukraine conflict in the hope that a weaker rupee will increase export competitiveness and assist close gaps presumably widening due to rising oil costs."
 
"The rupee has lost another 1 per cent against the dollar since morning and trading at 76.87, it made a high of 77.08 in the morning."
 
In addition, Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities: "The Indian rupee weakened on mounting concerns of higher trade deficits on account of surging crude oil prices. Deteriorating risk on sentiments is likely to result in postponement of expected large IPO fund-flows."
 
"Incessant FPI selling in equity markets is also putting pressure on the Indian currency."


IANS
Mumbai
For Latest Updates Please-

Join us on

Follow us on


What binds the two most talked about nations - India and Pakistan together? What makes the

Raipur-based lawyer Faizan Khan – who was arrested in connection with the extortion-cum-

LG Electronics Inc said on Wednesday that it will introduce new C with its artificial inte

 

Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live

172.31.16.186