Rupee Hits Fresh Record Low Of 70.32 Against US Dollar: 10 Points
- The rupee opened at a record low of 70.25 a dollar and weakened further to trade at a fresh low of 70.32, down by 43 paise, reported news agency Press Trust of India (PTI). At 9:13 am, the rupee was trading at 70.25/26 per dollar, versus its Tuesday's close of 69.90/91. Markets were closed on Wednesday for a national holiday, reported news agency Reuters.
- Experts attributed the fall in rupee to the trade deficit hitting a 5-year high. "The trade deficit is the major trigger for today's fall in the rupee. Even though the Turkish lira has recovered, the dollar index continues to move higher. The rupee will recover when global market stabilizes. I think, the rupee will remain under pressure in the next few sessions," said Rushabh Maru, Research Analyst, Anand Rathi Share and Stock Brokers.
- The trade deficit for July widened to a more than five year high of $18.02 billion, driven largely by a surge in oil imports.
- Even if the rupee appreciates, the appreciation would not sustain for long due to global uncertainty, Mr Maru added.
- PTI reported forex dealers as saying that besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
- Furthermore, depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee, they added.
- On Wednesday, Union Minister Arun Jaitley said, "Recent developments relating to Turkey have generated global risk aversion towards emerging market currencies and the strengthening of the dollar. However, India's macro fundamentals remain resilient and strong. The developments are being monitored closely to address any situation that may arise in the context of the unsettled international environment."
- On Tuesday, the rupee settled at 69.90 against the greenback, after weakening to a fresh all-time low of 71.10.
- Meanwhile, oil prices recouped some of the previous day's losses after Beijing said it would send a delegation to Washington to try to resolve trade disputes between the United States and China that have roiled global markets. International Brent crude oil futures were at $70.93 per barrel at 0335 GMT or 9:05 am IST, up 17 cents, or 0.26 percent, from their last close, reported Reuters.
- Since a weaker rupee is positive for IT companies, tech stocks traded higher. The Nifty IT index traded 0.29 per cent higher as seven out of 10 stocks advanced. At 9:52 am, the Sensex traded at 37,778.08, down 73.92 points or 0.20 per cent and the Nifty50 was at 11,415.90, down 19.20 points or 0.17 per cent. (With agencies inputs)
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
