NEW DELHI: according to sources related to business and stock market the Indian rupee on Thursday opened at an all-time low of 68.89 against the US Dollar. Indian rupee slipped a further 28 paise against the earlier close of 68.61.
Worth mention here rupee had closed at a 19-month low on Wednesday. This was season’s biggest single session fall.
The fall in the currency has its roots in the concerns that higher crude oil prices will go downhill the fiscal balance and pick up the pace for inflation.
According to TOI Crude oil prices inched up further with US crude futures rose $.23 to settle at $72.76 a barrel. Brent crude increased $1.31 to patch up at $77.62 a barrel.
After a short smash, crude oil prices have bounced back after the US asked its associates to stop all imports of Iranian oil by a November time limit. Distress over supply disruptions in Libya and Canada also burst the prices.
The currency market was edgy after RBI painted a depressing picture of the banking sector in its bi-annual financial stability report. Higher inflation, concerns over fiscal shortfall and hawkish position from the RBI have driven up bond succumbs, hurting bond prices.
Currency traders are also tensed about the future of international trade against the severe milieu of a rising trade rhetoric between the US and China.