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MUMBAI – The Indian rupee has reached its all-time low against the dollar, amid fears that rising oil prices will undermine the country's strong economic fundamentals.
The Indian currency crossed for the first time 69 dollars Thursday; the previous record, 68.90, was set in 2016.
"There is a bit of panic in the market as we venture into a new territory," said Kishore Narne, head of commodities and commodities. currency at Motilal Oswal Financial Services Ltd.
The 8% fall of the rupee in 2018 makes it the weakest currency in Asia this year
The dollar has climbed against most currencies as investors flee to safe havens, but the rupee was particularly affected. investors have abandoned their debt. For the year, they were net sellers of $ 6 billion in Indian debt, including $ 1.6 billion this month. Last year, they were net buyers of $ 23 billion.
The rupee has collapsed despite the efforts of the central bank to support and attract investment. Earlier this year, the Reserve Bank of India increased corporate bond investment limits and eased the rules for state bond holders.
Analysts believe that the pressure on the rupee will continue in the coming months. India's Current and Budgetary Deficits
India is particularly vulnerable to fluctuations in oil prices because it imports 80% of its energy needs. Oil prices reached their highest level in more than three years this week.
Write to Debiprasad Nayak at [email protected]
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