High crude oil prices drive rupee to fresh low

Mumbai, Aug 30: High global crude oil prices, along with continuous outflow of foreign funds pulled the Indian rupee to a fresh low on Thursday.

According to analysts, caution ahead of key macro-economic data, coupled with a rise in demand for US dollars also dragged the rupee lower.

High crude oil prices and month-end demand for the US dollar have pulled the rupee lower, Anand Rathi Shares and Stock Brokers research analyst Rushabh Maru told IANS.

Around 12.30 p.m. the Indian rupee was pegged at 70.75 after it touched 70.81-82 to a US dollar — the lowest ever mark — against the greenback.

It opened the day’s trade at the Inter-bank foreign exchange market at 70.58 to a US dollar and soon surpassed its record low of 70.65 to a greenback on Wednesday.

Apart from high crude oil, outflow of foreign funds from the Indian equity and bond markets has had an adverse impact on the rupee.

Investment-wise, provisional data with exchanges on Wednesday had shown that foreign institutional investors sold scrips worth Rs 1,415.87 crore whereas domestic institutional investors bought stocks worth Rs 1,114.36 crore.

Besides, caution prevailed ahead of the release of India’s GDP and fiscal deficit data. The key macro-economic data points will be released on Friday.

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