ZCZC
BCN-50
INDIA-ECONOMY-CURRENCY
Indian rupee plunges to new low against the dollar
MUMBAI, Aug 29, 2018 (BSS/AFP) – India’s rupee hit fresh lows against the
dollar Wednesday as emerging market currencies continue to be sold off.
The under-pressure currency in Asia’s third-largest economy slid to 70.50
to the greenback in late morning trade, a record low.
The rupee has been steadily falling throughout 2018 after starting the year
at 63.67.
Earlier this month it crossed 70 for the first time as India was buffeted
by the turbulence of the Turkish financial crisis.
The rupee was not alone, with the currencies of other emerging economies
heavily dependent on dollar-dominated foreign capital like Brazil, South
Africa, Argentina and Brazil also slipping in August.
The rupee slump is widening India’s current account deficit, when the
value of imports exceeds that of exports.
India is a massive net importer of oil, securing more than two-thirds of
its needs from abroad.
High oil prices have been squeezing the rupee, making it less appealing to
investors, analysts say.
India’s central bank has raised interest rates this year in part to help
increase the value of the rupee.
BSS/AFP/SR/1810 HRS