Mumbai: The Indian rupee is likely to fall to a fresh one-year low on Friday as record high oil prices push up dollar demand from refiners, with data forecast to show inflation holding at a 3- year high.
The partially convertible rupee (INR=IN) ended at 41.76/77 per dollar on Thursday, off an intraday low of 41.80, the weakest since 20April, 2007, according to Reuters data. The rupee had closed at 41.36/37 on Wednesday, and has fallen more than 2.5% this week.
Oil, India’s biggest import, hit a record high above $124 a barrel on Thursday. India imports 70% of its oil needs, and crude refiners are among the biggest Indian buyers of dollars.
India’s wholesale price index (INWPI=ECI) is forecast to have risen 7.61% in the 12 months to 26April, the highest since 13November, 2004 when it stood at 7.68%. The data is due around noon (0630 GMT) on Friday.