Mumbai: The Indian rupee ended at 68.79 per dollar on Thursday, after reaching an all time low earlier in the day. On Friday, it regained some lost ground opening 15 paise higher before rebounding to 68.36, but the outlook for some experts still remains bleak.
"A sharp fall in the rupee is a panic reaction in response to oil price rise and caution by the Reserve Bank of India on the NPA (non-performing assets) situation in banks in its recently released financial stability report," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Escalating trade rhetoric between the US and China/EU is bringing pressure on Asian currencies," Jasani added.
According to Rahul Sharma, Senior Research Analyst at Equity99, if the 69.5 level is taken out then there might be a sharp depreciation in the rupee in coming days and the rupee may move towards 72 mark against the dollar in the near term.
"The Indian rupee fell to a lifetime low today due to serval factors like rising dollar and crude aided by a wider current account deficit and continuous outflow from FIIs (Foreign Institutional Investors) pushed the currency lower," he said, adding that FIIs have sold over Rs 40000 crore in debt and equity so far this year.
Finance Minister Piyush Goyal ruled out any 'knee-jerk' reaction from the government. "I have full faith that the RBI, which manages foreign exchange and rates, and the government will sit together and discuss. We will take a call on appropriate measures taking into consideration the global situation," he said, adding, "Knee-jerk reaction is not called for. One has to work in an organised market and in an organised fashion."
On Thursday, the rupee had ended 18 paise weaker than the previous close of 68.61 per dollar, data from the website of Foreign Exchange Dealers Association of India showed.
Earlier in the day it had plunged to an all-time low and breached the Rs 69 per dollar mark, due to high crude oil prices and weak macro-economic fundamentals.
The rupee's last record low was 68.87 per dollar, hit on November 24, 2016.
69 to the dollar?— Ramesh Srivats (@rameshsrivats) June 28, 2018
The #Rupee used to make a lot of sense.
Now it only makes cents.
Rupee at all time low Modiji :— Kapil Sibal (@KapilSibal) June 28, 2018
Rs 68 .89 to a $
In your pre-poll rhetoric you promised to bring it down to :
Rs 48 to a $
Was that also a jumla ?
Chhapan inch ki chhati ka kya hua ?
(With IANS inputs)