In the year 2018, Rupee traded and closed at ₹63.68 i.e., on 01st Jan 2018 and on 10th Sept 2018 rupee value impaired and closed at ₹72.455. Maximum slumped to ₹73.01 and minimum touch down point is at ₹62.245 (difference ₹9.765). The changeover percent is 13.495.
Forex market traded 197 days, of which 102 and 95 days traded and closed negative (rupee depreciated) and positively (rupee appreciated) respectively.
On Monday i.e., 10th September 2018 rupee slumped to a fresh record low of 73.01 and closed at 72.455 by losing 35 paisa compared with previous close i.e., ₹72.105 against the US dollar for the first time ever on persistent demand for the US currency amid rising crude prices. Inter bank Foreign Exchange, the local currency opened at a record low of ₹73.010 against a US dollar (0.049% crash with previous close). Strong demand for the American currency from importers, capital outflows too weighed on the domestic currency today.
The spike in crude oil prices has pulled down the rupee, by pushing up dollar demand and plays at ₹4,916 a barrel. On side global trade war fears triggered by the US and China’s retaliatory import tariffs have also weakened the Rupee and contagion risks from Turkey and Argentina are the factors impacting Forex market segment on another end.
Central banks also taken several moves to support its currency, including its foreign cash reserves using and hike in interest rates twice within the last month. Escalating global trade tensions could prompt further weakening the domestic currency along with the exodus of capital from a nation also added excess volatility. With year to data, Rupees slumps 11 per cent and stood as worst performing currency across Asia.
It’s a virtual collapse of Indian rupee and investors hits a panic button and even government’s efforts to calm investor nerves failed to yield positive results.
Meanwhile, petrol and diesel prices climbed up and sat overheads of the public across the country driven by the combination of surging on crude oil prices and falling rupee value, stoking inflationary pressure in the economy.
