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Will Rupee Slide To 70 Per Dollar? 5 Reasons Why Rupee Is Falling

Possibility of rupee heading towards 70 increasing, say some experts Rupee has fallen sharply against US dollar this year On Wednesday, rupee hit 16-month low of 68.13 against greenback

NDTV Profit Team
Earlier this week, the rupee (INR) breached 68 level against the US dollar (USD).

After posting strong gains against the US dollar in 2017, the rupee has fallen sharply against the greenback this year. The rupee is down about 6 per cent so far this year against the US dollar. The rupee is close to 68 levels per US dollar on Friday. Some experts believe that the possibility of the rupee heading towards the 70 mark against the US dollar is increasing. "Macros are stacked against the rupee...and the possibility of rupee hitting 70 soon is increasing," forex advisory firm IFA Global said in a note.

"The current bout of rupee weakness does not just seem like a passing phase. The inflation dynamics have changed. India is vulnerable to rising crude prices," IFA Global said.

After posting strong gains against the US dollar in 2017, the rupee has fallen sharply against the greenback this year. The rupee is down about 6 per cent so far this year against the US dollar. The rupee is close to 68 levels per US dollar on Friday. Some experts believe that the possibility of the rupee heading towards the 70 mark against the US dollar is increasing. "Macros are stacked against the rupee...and the possibility of rupee hitting 70 soon is increasing," forex advisory firm IFA Global said in a note.

"The current bout of rupee weakness does not just seem like a passing phase. The inflation dynamics have changed. India is vulnerable to rising crude prices," IFA Global said.

After posting strong gains against the US dollar in 2017, the rupee has fallen sharply against the greenback this year. The rupee is down about 6 per cent so far this year against the US dollar. The rupee is close to 68 levels per US dollar on Friday. Some experts believe that the possibility of the rupee heading towards the 70 mark against the US dollar is increasing. "Macros are stacked against the rupee...and the possibility of rupee hitting 70 soon is increasing," forex advisory firm IFA Global said in a note.

"The current bout of rupee weakness does not just seem like a passing phase. The inflation dynamics have changed. India is vulnerable to rising crude prices," IFA Global said.

Here are five reasons why the rupee is falling against the US dollar (INR vs USD):

Global oil prices

annual retail and wholesale inflation

Trade deficit widened to $13.72 billion

boosted the dollar

Indian bonds

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Trade Setup For Aug. 28: Nifty Sees Key Support At 24,670

  • chevron-double-right Nifty 50 fell below its 50-day EMA, indicating strong intraday selling pressure
  • chevron-double-right Nifty 50 closed 1.02% lower at 24,712.05 with support at 24,670 and 24,500 levels
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