Rupee may hit 20-mark against UAE dirham in few days

For investors in India the 2019 Lok Sabha elections will also add to near-term economic policy uncertainty. Graphic Mint

For investors in India the 2019 Lok Sabha elections will also add to near-term economic policy uncertainty. Graphic Mint

Rajiv Raipancholia, CEO, Orient Exchange, said the rupee can depreciate to 20 against the dirham but it will face resistance at this level because the market expects foreign fund inflows into India to start at this stage.

Around 12.30 am, the rupee traded at 72.66 per greenback.

The finance ministry is in touch with the Reserve Bank for market intervention to check declining value of rupee, which has weakened to a low of 72.45 to a dollar, an official said.

However, the official said that the decline of rupee is not secular as the Indian currency has strengthened against British Pound, Euro, Chinese Yuan and Japanese Yen.

Global credit rating agency Moody's Investors Service said in a report that sustained weakening of the rupee was "credit negative" for Indian companies which generate revenue in rupees but rely on U.S. dollar debt to fund their operations.

The Indian rupee, according to Ahamed, is tracking global cues along with the rising oil prices which has been steadily increasing in the past three-four months and added to short-term fiscal pressure.

Mumbai: The ongoing free fall of the rupee against the USA dollar is credit negative for Indian companies, especially for those that generate revenue in rupees but rely on dollar debt to fund their operations and have substantial dollar-based expenses, Moody's Investors Service said on Monday.

The Indian rupee has depreciated 13 per cent so far in 2018.

On Monday, Moody's Investors Service warned that ongoing free fall of the rupee is credit negative for Indian companies, especially for those that generate revenue in the rupee but rely on dollar debt to fund their operations and have substantial dollar-based expenses.

Oil prices rose as US drilling for new production stalled and as the market eyed tighter conditions once Washington's sanctions against Iran's crude exports kick in from November.

India's current account deficit (CAD) widened to United States dollars 15.8 billion in April-June in value terms this year as against USD 15 billion in the same quarter of 2017-18, mainly due to a higher trade deficit, according to RBI data released Friday.

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