Mumbai: The rupee on Friday closed at a new low of 77.84 against the US dollar, falling for a week. The local currency has lost 21 paise against the dollar during the week, with a few paise losses every day.
The rupee came under pressure following a sell-off in the equities on Friday, despite a rise in the dollar against major currencies. The domestic currency opened at 77.81 and traded at a low of 77.93 before consolidating.
India’s basket of crude oil traded higher at USD 121 a barrel against an average price of USD 105, dealers said. reserve Bank of India while preparing your macroeconomic projections. Dealers said apart from crude oil prices, higher capital outflow from equity markets was keeping the rupee under pressure.
According to a report by Moody’s Investor Services, agency rates (mostly large corporates) have the buffer to withstand 10-15% depreciation of the rupee. “Most rated companies have protections to limit the effects of currency fluctuations. These include natural hedges in the form of revenue and costs or are dollar-linked, some dollar revenues, financial hedges, or these factors. combinations, which help limit the adverse impact on cash flow and leverage, even in the event of a more severe weakening of the rupee,” it said. Annalisa Di ChiaraMoody’s Senior Vice President
With higher-than-expected US inflation late in the evening, there are fears that the market could see a selloff as funds risk aversion.
“We expect the rupee to weaken in the coming months. If this continues, the rupee is expected to remain in the range of 77.5 and 78.25.’ hand dalmiaFounder and Director, efficient equity,
The rupee came under pressure following a sell-off in the equities on Friday, despite a rise in the dollar against major currencies. The domestic currency opened at 77.81 and traded at a low of 77.93 before consolidating.
India’s basket of crude oil traded higher at USD 121 a barrel against an average price of USD 105, dealers said. reserve Bank of India while preparing your macroeconomic projections. Dealers said apart from crude oil prices, higher capital outflow from equity markets was keeping the rupee under pressure.
According to a report by Moody’s Investor Services, agency rates (mostly large corporates) have the buffer to withstand 10-15% depreciation of the rupee. “Most rated companies have protections to limit the effects of currency fluctuations. These include natural hedges in the form of revenue and costs or are dollar-linked, some dollar revenues, financial hedges, or these factors. combinations, which help limit the adverse impact on cash flow and leverage, even in the event of a more severe weakening of the rupee,” it said. Annalisa Di ChiaraMoody’s Senior Vice President
With higher-than-expected US inflation late in the evening, there are fears that the market could see a selloff as funds risk aversion.
“We expect the rupee to weaken in the coming months. If this continues, the rupee is expected to remain in the range of 77.5 and 78.25.’ hand dalmiaFounder and Director, efficient equity,