Indian Rupee Plunges To 71.96 Against US Dollar
New Delhi: The Rupee continued its downward spree and plunged to an all time low of 71.96 against the US Dollar on Wednesday. Dealers have said that the drastic depreciation in the value of rupee is due to the sudden surge in dollar-buying by banks and importers. Earlier, the domestic currency had resumed at a closing level of 71.58 a dollar at the interbank foreign exchange market on Tuesday.
The dollar strengthened against numerous currencies overseas as the US economy continued to exhibit power amid a threat of escalating US-China trade conflict. The Indian Rupee has been impacted by multiple factors – both economic as well as global trade related.
On the global front, some of the key factors which have lead to strengthening of the US dollar are the sanctions against Iran on oil and China on trade. This is adversely impacting the Indian economy as India is a heavy importer of oil. India’s current account and trade deficit as well as the fiscal deficit have also played a significant role in the depreciation of rupee.
Notably, the domestic currency has been Asia’s worst performing currency so far this year due to higher global oil prices, turbulence in emerging markets and global trade conflicts. The value of Rupee has reduced by 10% since January this year.