INSUBCONTINENT EXCLUSIVE:
The rupee plunged by 49 paise against the dollar to close at 70.59 on Wednesday
That marked the steepest fall in the rupee against the greenback in about two weeks
Weakness in other Asian currencies and strong month-end demand for the dollar back home led the decline in the rupee
During Wednesday's session, the rupee shed as much as 55 paise to touch a lifetime low of 70.65 against the US dollar, but contained those
losses to finish the session at 70.59.Concerns on the current account deficit front weighed on the currency as crude oil prices rose, say
analysts."With Brent oil moving up again, given our twin current account and trade deficits, Rs 70/dollar seems to be the new normal
With US consumer confidence index reaching its highest level since Oct 2000, we see dollar to continue to strengthen," Salil Datar, CEO and
executive director, Essel Finance VKC Forex, told TheIndianSubcontinent.Mild gains were witnessed in crude oil prices Wednesday in
anticipation of tightening Iranian supplies
Benchmark Brent crude oil around $76.15 a barrel
However, indication of a rise in US inventories limited the advances in crude oil prices.Higher oil prices than in the last two years and
budget and the current account
However, growth prospects remain in line with the economy's potential, around 7.5 per cent this year and next," Moody's vice president and
senior analyst Joy Rankothge said.Government data earlier this month showed that India's trade deficit widened to a more-than-five-year high
of $18.02 billion in July, driven largely by a surge in oil imports
The country meets more than 80 per cent of its crude oil requirements through imports.Analysts expect the rupee to trade under pressure
31."We expect rupee to be at 70-70.70 and could touch 71 levels
Our GDP numberscan give it a fresh direction, but we see rupee to continue to be under pressure," Mr Datar said.Meanwhile, the Reserve Bank
of India (RBI) released its annual report for 2017-18 on Wednesday
As many as 99.3 per cent of the old 500 and 1,000 rupee notes, that were banned overnight in November 2016, have been returned, the central
against the American currency to settle at 69.93.Stock markets broke their two-day record-setting spree on Wednesday, with BSE benchmark
index Sensex closing 173 points lower at 38,722
The NSE Nifty fell 46 points to end at 11,691.(With agency inputs)
