INSUBCONTINENT EXCLUSIVE:
For the week, the rupee depreciated sharply by 0.88 per cent against the dollar.
The rupee on Friday crashed below the key 66 level to settle at a 13-month low
of 66.12 against the US currency, hit by a resurgent dollar, firming crude prices and a more hawkish tone of the Reserve Bank
Extending its slide for a fifth day, the domestic currency took a hit of 32 paise to close at more than one-year low as the RBI's surprised
hawkish tone kept overall sentiment bearish
India's foreign exchange reserves rose to a life-time high of $424.864 billion at the first week of April, aided by increase in foreign
currency assets, according to the RBI data
For the week, the rupee depreciated sharply by 0.88 per cent against the dollar.This is the lowest closing level of the rupee since March
10, 2017, when it had settled at 66.60 against the US dollar.Rupee Plunges To 13-Month Low
Rupee Opened Down: Extending its bearish market stance, the rupee opened with a big gap-down at 66.06 from Thursday's close of 65.80 at the
inter-bank foreign exchange (forex) market
After trading within a very tight range for most part of the day, the local unit drifted sharply towards the fag-end trade to end at the
day's lowest level of 66.12, revealing a steep loss of 32 paise, or 0.49 per cent.2
Rupee Dropped Over 1%: The rupee has dropped by more than 1 per cent in April and by 3.52 per cent this year so far
"Indian rupee fell for a fifth session as RBI minutes revealed that RBI's tone is more hawkish than what markets had previously gauged
FII selling and firm oil adds to pressure on rupee, while US dollar is also not expected to yield much ahead of May's FOMC meet," Anand
James, Chief Market Strategist at Geojit Financial Services said.3
Trade Deficit: Headwinds in the form of widening in trade deficit due to surging crude prices accompanied by portfolio outflows amid
unsupportive global factors have weighed on the local currency in the last few trading session
Overall forex mood turned fragile following a probability of rate hike as early as June despite easing inflation, a currency dealer said.4
RBI Outlook: The RBI earlier this month outlined higher growth expectations for the new fiscal citing strong revival in investment activity
and also lowered its inflation forecast
It though kept key policy rate unchanged for the fourth consecutive time since August
Moreover, higher US yields largely supported the greenback
The benchmark US 10-year treasury yield topped 2.90 per cent and was eyeing the elusive 3 per cent level.5
Crude Prices Surge: Meanwhile, crude prices stayed near three-year highs reached earlier this week, supported by continued Middle East
tensions and signs of healthy US demand
Brent crude was trading at USD 73.30 a barrel in early Asian trade.
