The rupee dropped to a new low versus the US dollar on Tuesday sentiment for the domestic currency took a turn for the worse after trade deficit hit a record high in June.
The rupee slumped 0.5 per cent to close at a fresh low of 79.36 per US dollar on Tuesday. The previous closing low for the rupee was 79.04 per US dollar on July 1. Unabated outflows of overseas investment from Indian equity markets added to the rupee's woes, with traders predicting fresh weakness for the currency going ahead, given the unfavourable outlook on the current account amid elevated oil prices.
"We see multiple headwinds, including weakening India BOP dynamics, aggressive Fed hikes and rising US recession risks, which should drive INR weakness in coming months, with USD/INR at 82 by Q3 2022 and 81 by Q4 2022," Nomura said a note.
Global oil prices, which have surged since the Ukraine war broke out in late February, hardened anew since last month as major producers made little headway with pushing up supplies amid firm demand. The rise in crude oil prices poses major upside risks to inflation and current account deficit, given that India imports more than 80 per cent of fuel needs.
Esta historia es de la edición July 06, 2022 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 06, 2022 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Brokerages bullish on ICICI Bank stock after Q4 results
Bank's market cap zoomed past 8 trillion mark and settled at ₹8.14 trillion
Choose Aadhaar-based KYC: Once done, you may invest across fund houses
Keep Aadhaar, registered mobile number and scanned documents handy before starting online procedure
Sebi probing Linde India for RPT violation
The Securities and Exchange Board of India (Sebi) on Monday directed Linde India to comply with the norms of materiality thresholds for future related party transactions (RPTS) based on the aggregate value of transactions, amid an ongoing investigation by the regulator.
Hopes of universal bank tag lift AU SFB
Shares of AU Small Finance Bank (SFB) rallied more than 6 per cent on Monday after analysts said the lender meets all eligibility criteria laid down by the Reserve Bank of India (RBI) for obtaining a universal banking licence.
Silver ETF AUM tops ₹5,000 cr
Last month, Gold ETF AUM had topped ₹30,000 crore
Street disappointed with SBI Card's Q4 performance
SBI Cards & Payment Services reported mixed results for the January-March quarter (Q4) of FY24.
Fee outgo: BSE mcap plunges by ₹6,000 cr
Analysts see price hike in options segment to offset costs
Backed by banking stocks, benchmarks gain 1%
The Sensex and the Nifty 50 on Monday gained over 1 per cent each, driven by sharp increases in banking stocks following better-thanexpected quarterly profits from index heavyweight ICICI Bank.
Tone and substance
Subtle shifts in the texture of Sino-US ties
India's West Asia security dynamics
Despite its stakes in the region, its policy doesn't aim for long-term regional stability