Published: Thu, October 04, 2018
Money | By Armando Alvarado

Indian rupee collapses to 73.77 against Dollars

Indian rupee collapses to 73.77 against Dollars

After opening at new-record low of 73.26, the Indian currency further dropped to 73.41 per dollar. It was further boosted when Fed chairman Jerome Powell suggested that moving beyond neutral interest rates was a possibility.

The rupee crashed below 73 against the dollar on Wednesday, falling by 43 paise.

Traders were concerned that a rise in USA interest rates and expensive oil could lead to fiscal slippage, increase inflationary pressures and raise the chances of the Reserve Bank of India (RBI) increasing interest rates in its monetary policy review later this week.

"For bond markets, a 25 bps hike accompanied by a hawkish stance could trigger the 10-year bond yield to rise to 8.25 percent", Rao told Reuters after yields surged on Thursday.

"A stronger dollar along with soaring oil prices have magnified the rupee decline". Indonesia has a large current account deficit stemming from its oil imports.

LG V40 ThinQ five cameras working explained
On the front, the details shared by the tipster suggests that the phone would come with a standard and a wide-angle lens. Its rivals are now offering telephoto lenses with 2x optical zooms, while the Huawei P20 has a 3x optical zoom.

The RBI is also expected to assure markets that adequate funds are available after investors panicked when a series of debt defaults by Infrastructure Leasing & Financial Services (IL&FS) led to redemption pressure at other companies in the shadow banking sector.

Research Analysts say sharp rise in the crude oil prices along with steep depreciation in the rupee might push inflation higher in the coming months.

US Treasury yields jumped to multi-year peaks on Wednesday, with the 10-year yield reaching a seven-year high after Wednesday's robust data bolstered the case for the Fed to raise interest rates again in December and beyond.

The Indian rupee is the worst performing Asian currency this year, having lost more than 13 per cent. Higher prices have swollen India's current account deficit, which last stood at around 2.4 per cent of GDP, in the April-June quarter.

India now imports more than two-thirds of its oil needs.

Like this: