The Indian rupee on Friday plunged to breach the 71 mark for the first time against US dollar in opening trade. According to reports, the dollar demand from importers and rising crude oil prices in the international market during the last couple of months has pressurised the local currency.
Now, Indian rupee with the lifetime low against a dollar has become the worst performing currency in Asia on a year-to-date basis. Alone in the month of August, the local currency has fallen by 3.30 percent, highest fall among Asian currencies.
On Thursday this week, the rupee had ended at lifetime low 70.74 per dollar.
“Indian Rupee has depreciated around 11% year to date. Higher crude oil prices, demand from defence and oil marketing firms have contributed to the latest bout of weakness,” VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities was quoted as saying by moneycontrol.com.
With the free fall continuing, the rupee seems to be on track to depreciate for the seventh straight month in August, its longest losing streak in nearly 18 years.
The local currency continues to fall as traders are waiting for the release of the June-quarter GDP data, which is expected to forecast expansion of 7.6 percent from a year earlier, according to a Bloomberg survey.