Rupee Crashes To Lifetime Low of 69 Against US Dollar

Vartha Bharati | 28-06-2018 | 11:41:00 IST

New Delhi : The rupee fell to an all-time low against the US dollar on Thursday tracking Asian peers, with weakening macro-economic fundamentals on the domestic front also weighing on the currency. The dollar's sharp gain overnight coupled with falls in Asian peers caused the drop in early trade, traders said, adding they were hopeful the central bank would step in to prevent further losses. The rupee was trading at 68.92/93 to the dollar at 11.12 am, after hitting a life low of 69.0950 earlier in the session, and sharply lower than its previous close of 68.65/66.

The rupee's last record low was 68.8650 per dollar, hit on November 24, 2016.

The dollar was, however, steady against its peers on Thursday, having failed to extend overnight gains amid conflicting signals from Washington on a proposal to restrict Chinese investment as the bitter U.S.-China trade row kept financial markets on edge.

On the domestic front, a widening current account deficit (CAD) due to higher global crude oil prices and steady capital outflows have weighed on the rupee this year.

"Weakening at this pace shatters confidence. Markets expect RBI (Reserve bank of India) to manage the currency more effectively. The pressure on INR is high, thus in the absence of major action from regulators, 70 levels can be seen," the head of currency and debt trading at a foreign bank said. "The RBI has been effectively managing (the rupee) over the years, and they do have ample firepower to manage sharp falls."

Foreign exchange reserves stood at $410.07 billion as of June 15, latest RBI data showed.

Oil prices have been rallying for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

Economy's March quarter CAD widened to $13.0 billion, or 1.9 per cent of GDP, from $2.6 billion, or 0.4 per cent of GDP, from a year earlier. Despite the rise in CAD, it remains modest relative to GDP and is largely financed by equity inflows, including foreign direct investment (FDI), Moody's said in a note on Thursday, adding that the large foreign exchange reserves provided a good buffer.

"India's low dependence on foreign-currency borrowing to fund its debt burden limits the risk of currency depreciation transmitting into materially weaker debt affordability," Moody's added.

courtesy : ndtv.com

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New Delhi: Since the closure of airspace in West Asia, Indian airlines have brought back around 15,000 stranded passengers from the UAE, Saudi Arabia, and Oman.

According to the Ministry of Civil Aviation (India), recovery flights began on March 2. These figures cover operations through March 5. On Friday, March 6, a total of 40 inbound flights returned people to India.

As many as 51 flights are scheduled to arrive on Saturday, March 7 which is the highest number since airstrikes in the region began on February 28, according to The Hindu.

Besides Indian carriers, Gulf airlines are also engaged in the airlifting activity. The Emirates, flydubai and Etihad Airways have operated some special flights and limited commercial services.

The ministry has set up a control room and helpline for passengers seeking travel assistance and can be contacted on 011-24604283 and 011-24632987.