Rupee hits a new low : 70.59

The government said global crude prices will come down in the coming days and the rupee will stabilise in the 68-70 band against the US dollar even as the Indian currency hit a record low of 70.59, while diesel prices climbed to an all-time high.

The rupee has lost 9.5% so far in 2018, making it the worst performing Asian currency. A weak rupee has resulted in imports, overseas education and foreign travel getting more expensive. The biggest impact is on petrol and diesel prices as India imports nearly 80% of its crude oil requirement. Global crude prices have also risen, making it a double whammy for consumers as well as the government, which is under pressure to pare taxes.

During the first three months of the current fiscal, FPIs withdrew $9 billion, and in July it was “neutral”. But in August they have been net buyers of the order of $1 billion.

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