India rupee PLUMMETS to ALL-TIME LOW – oil price crisis DEEPENS
THE INDIAN rupee has plummeted in value to an all-time low, with one financial expert warning “volatility is here to stay”.
By JOEY MILLAR
Express.co.uk
Thu, Aug 30, 2018
India’s rupee has dropped to 70.8100 against the US dollar, an all-time low and a more than 10% drop since the start of the year.
DBS Economist Radhika Rao said due to economic instability sparked by trade wars and oil price chaos, “volatility is here to stay”.
Ms Rao said: “Markets get a sense that the authorities are tolerant of a weaker rupee, with little by way of jawboning or verbal intervention.
“With the US Fed expected to gradually tighten policy rates in the rest of 2018 and in 2019, lingering trade war fears and jump in dollar demand domestically.
And Deutsche Bank Wealth Management’s Tuan Huynh, Chief Investment Officer, also attributed the plummeting rupee to the oil price crisis.
Mr Huynh said: “Weakening has accompanied rising investment concerns about emerging markets more broadly, as well as a widening current account deficit, itself largely the result of higher oil prices.”
India is a net importer of oil and has been hit hard by higher prices across the globe.
Yesterday it was revealed India is set to overtake China as the country with the highest demand for oil in the globe.
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