Rupee Sinks to All-Time Low vs. US Dollar

The Rupee hit a new low vs the US dollar today crossing the 69 threshold for the first time.

The Rupee hit a Record Low against the US dollar today on oil and emerging market concerns.

While most currencies have been losing ground against the dollar, the rupee’s 8% slide in 2018 makes it Asia’s worst-performing currency. Among other emerging markets, only Argentina, Brazil, Russia, Turkey and South Africa have performed worse.

The rupee has been sliding despite central-bank efforts to prop it up and attract investment. Earlier this year, the Reserve Bank of India increased corporate-bond investment limits and relaxed rules for foreign owners of government bonds.

Credit Downgrade

Aljazeera reports Indian Rupee Hits Record Low Amid Inflation, Credit Downgrade

The Indian rupee on Thursday weakened past 69 to the dollar for the first time, slumping to an all-time low amid a spike in crude oil prices, foreign capital outflows and a widening current account deficit.

Last week rating agency Standard & Poor's cut the country's credit rating outlook to "negative".

Asia's third-largest economy is battling inflation and a widening current account deficit stoked by high oil prices. This, in turn, is adding to selling pressure on the Indian currency.

India's troubles began long ago so Trump is not to blame for the entire slide. However, Trump put another long on the fire with his policies in Iran.

For discussion, please see Trump to India: No Waiver on Iran Business.

Mike "Mish" Shedlock

Comments (6)
No. 1-6
flubber
flubber

20 million rupees for Slum-Dog Millionaire ain't going to buy what it used to

Mumbai Indian
Mumbai Indian

India is a non productive consuming economy. Everything here runs on debt. Hope India meets the same fate like Greece and IMF comes once again to reign in wasteful spending of the elites.

mbass100
mbass100

how will this impact india's #1 export, people?

sachvik
sachvik

That will continue to go up. I increasingly hear that the supply of potable water in India is shrinking rapidly and would bet that a major conflict/ war over drinking water is brewing in the Indian subcontinent... Note that all major rivers that provide water to Pakistan go through India first...