The Indian rupee, extended its losses for the fifth consecutive day and traded 17 paise down at 68.73 against the US dollar, its lowest level since August 2013.
The rupee crashed to a nearly 39-month low of 68.84 amid sustained foreign fund outflows and the greenback’s surge in overseas markets.
The rupee breached the 68.80 mark as upbeat economic data strengthened the prospect for higher US interest rates, while the dollar’s bull run continued as US bond yields hovered near multi-year highs.
The rupee has fallen against the dollar since Donald Trump won the presidential election in the US on November 9, 2016. It has fallen from the 66.43 level and reached the 68.8325 mark today.
On the global front, Federal Reserve chair Janet Yellen has announced that Trump’s election has done nothing to change the federal reserve’s plans for a rate increase “relatively soon.” A rate hike in US will lead to flow of money from emerging markets leaving their currencies and assets vulnerable to the negative risks.
Chinese Yuan is also sinking, with values tumbling to a record low of 6.9378 against the US dollar at one point of time yesterday in the offshore markets. US dollar index will witness further gains, with values expected to hit 105 in the coming weeks. Euro seems to be the most vulnerable, influenced by the uncertainty over Italian constitutional referendum in the first week of December.
The Indian Rupee closed lower by 31 paise at 68.56/$. The local unit hit a high of 68.67/$ and a low of 68.83/$ today.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.47 while for the Euro it was 72.78. The RBI’s reference rate for the Yen stood at 61.71; reference rate for the Great Britain Pound (GBP) stood at 84.9665.
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