The Indian rupee is down more than 12 per centin 2018.The Indian rupee slipped 43 paise to hitall-time low of 73.34 against US dollar in morning trade on Wednesday, reported Press Trust of India (PTI).
Sharp rise in global crude oil prices over the last two sessions weighed on sentiment for the local unit.Strong demand for the American currency from importers and unabated capital outflows also affected the domestic currency, said PTI.At the forex market, the rupee opened lower at 73.26 and weakened further to quote at 73.34 a dollar against its Monday's closing of 72.91.Forex markets were closed on Tuesday on account of Gandhi Jayanti.Here are 10 things to know about rupee:1.
The benchmark 10-year bond yield was up 6 basis points at 8.05 per centon Wednesday.2.
Higher crude prices would continue to weigh on domestic bonds and the rupee.
The crude prices are likely to prevail over liquidity easing measures announced by the RBI.
The next domestic trigger would be the tone of the RBI policy on Friday, forex advisory firm IFA Global said in a note.3.
Globally, oil prices firmed on expectations of a tighter market once US sanctions start targeting Iran's petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains.
Brent and WTI (West Texas Intermediate) earlier this week both reached levels last seen in November 2014, and the two contracts have risen by around 20 and 17 per cent respectively since mid-August.4.The Reserve Bank of India (RBI) on Monday said that it would pump Rs 36,000 crore into money markets in October, pledging to buy back government bonds as part of a bid to quell fears of a credit crunch cascading through the economy.5.
The Indian rupee is down more than 12 per centin 2018.
There are predictions that crude could return to $100 per barrel.
Hence, signallingthat things may get a lot worse for the rupee in the final three months of the year, said aBloomberg report.6.
In 2013, the currency had rallied in the October-December period following a two-quarter plunge of more than 13 per cent on indications the Federal Reserve would wind back stimulus.7.Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,842 crore on Monday, provisional data showed.
8.
Meanwhile, Asian shares ticked down on Wednesday and the euro held at six-week lows as Italy's mounting debt and Rome's budget plan set it on a collision course with the European Union.8.Meanwhile, domestic stock markets started Wednesday's session on a negative note.
At 9:22 am, the SP BSE Sensex declined 158.54 points, or 0.43 per cent, to trade at 36,367.60.
The NSE Nifty50 index dropped 53.25 points or 0.48 per cent to trade at 10,955.05.(With inputs from agencies)