Rupee hits all time low against US dollar
The Indian rupee is at an all-time low.
The Indian rupee has lost more value against the US dollar and is now at a record low compared with the commodity.
It fell as low as 59.93 today (June 20th), down from its Wednesday close of 58.72. The move came on the back of an announcement from the US Federal Reserve that it could start reducing its asset purchasing programme soon.
Stuart Oakley, head of Asian currency trading at Nomura, told BBC News: "It is a classic case of a country's vulnerability to capital flight because of its current account deficit situation."
The rupee is down by more than 15 per cent against the US dollar since October last year, replicating the drops seen by the yen in recent months, though the yen has rebounded in the last few days. Analysts noted how the deficit situation and high inflation have weighed heavily on the rupee in the last year.
Last week (June 14th), the Dollar Index dropped to its lowest point in the last four months. Douglas Borthwick, a managing director and head of foreign exchange at Chapdelaine FX in New York, said: "The market got ahead of itself in early June."
Learn about the Asian markets and CFD trading at City Index
Latest market news
Today 11:14 AM
Today 08:28 AM
Yesterday 03:30 PM
Yesterday 01:23 PM