Rupee Hits Fresh Record Low Against US Dollar For The First Time

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New Delhi: The Indian rupee continued its downward trend on Friday and hit a fresh record low of 71 against the US dollar for the first time.

The Indian currency slid 26 paise to a new record low of 71.0013 against the US dollar.

Including today’s fall, the rupee has depreciated nearly 3.3 per cent in August so far and is set for its biggest monthly fall in three years.

According to Foreign Exchange (Forex) dealers, month-end demand for the US currency from importers, along with a strong dollar overseas and rising crude oil prices weighed heavy on the domestic currency.

Other than crude oil, the rupee has also been hit by factors like swelling current account deficit, lukewarm export growth and US trade protectionism.

It is worth noting that the Indian currency’s sharp fall has impacted a cross-section of society including companies having foreign currency debt, importers, those going on vacation and students planning to study overseas.

India imports crude oil, electronics, gold and edible oil from foreign countries. So the fall in rupee is likely to surge the country’s import bill. Analysts say the country’s import bill is expected to cross US $600 billion in the current financial year ending in March 2019.

According to Bloomberg data, the rupee is Asia’s worst performing currency this year.