INR
Indian Rupee hits historic low of 95.8 against US Dollar
The Indian Rupee weakened further and reached an all-time low figure of 95.8 against the US dollar on Wednesday.
According to reports, the downfall is facing the pressure of sustained foreign fund outflows, elevated crude oil prices and growing concerns around India's external balances.
The currency weakness was reached at a time when Brent crude was once again trading shy of $107 a barrel.
Speaking on the outlook for rupee, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities told NDTV Profit, "Weakness in secondary markets and continued FII outflows have added to pressure on the rupee, with investors turning defensive amid global uncertainty and rising oil prices. In the near term, rupee is expected to trade within a range of 95.25–96.00, with volatility likely to remain elevated."
Meanwhile, the Indian government on Wednesday increased customs duties on gold and silver to 15 per cent from 6 per cent, while raising the duty on platinum imports to 15.4 per cent from 6.4 per cent.
The move is aimed at curbing overseas purchases of precious metals and easing pressure on India’s foreign exchange reserves, reported Business Standard.
Modi calls for austerity amid West Asia tensions
The development in the market could be seen at a time when PM Narendra Modi urged citizens to adopt austerity measures.
Addressing a rally in Hyderabad last Sunday, Indian PM Narendra Modi urged citizens to adopt austerity measures in view of the worsening conflict in West Asia, warning that the global crisis could severely impact India’s economy through rising fuel prices and pressure on foreign exchange reserves.
The Prime Minister appealed to people to avoid unnecessary foreign travel for a year and refrain from purchasing gold during festivals and weddings.
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