Rupee Hits Fresh Record Low At 71 Against Dollar Amid Rising Fuel Prices
New Delhi: The Indian Rupee further stooped to an all-time low to hit the 71 mark against the US Dollar on Saturday. The depreciation in the value of the Indian currency comes in the wake of overall weakness in emerging market currencies, triggered by developments in Argentina and Turkey.
The value of rupee fell by 0.37% against the American Dollar, extending the total value depreciation to 10% this year. The Indian currency has emerged as the worst-performing market currencies with a sharp 10% decline in its value since January this year.
On the other hand, higher crude oil prices have led to an increase in dollar demand from oil refining companies. Market analysts have said that Argentina crisis along with rising crude oil prices have weakened the emerging market situation. Currency fluctuations in Argentina and Turkey are triggering fears of global crisis, with renewed worries over US-China trade woes.
Notably, crude oil prices have surged by almost 10% since mid-August, making imports dearer for India, which purchases over 75% of its fuel from overseas.