Rupee set to breach 70 against US dollar: 5 things to know1 min read . Updated: 24 Apr 2019, 06:07 PM IST
- Oil prices fell today but still remained at elevated levels
- Higher oil prices may put further pressure on India’s macro, including the rupee
The Indian rupee (INR) weakened against the dollar today, moving closer to the 70/dollar level. At day’s low, the rupee hit 69.98 a dollar, after opening at 69.76. So far during the day, the rupee traded in the range of 69.7563-69.98, as compared to Tuesday’s close of 69.63. The rupee has remained under pressure this week amid elevated oil prices. The rupee today ended at 69.87 a dollar.
Here are 5 things to know about USD Vs INR trade today
1) Analysts expect the rupee to fall below the 70/dollar soon. "The rupee could trade in the range of 69.60-70.05 in the near term, pressured by elevated crude and a stronger US dollar," forex advisory firm IFA Global said in a note.
2) The broader US dollar is trading strong today, with most Asian currencies weaker against the greenback, which gained after strong US housing data dampened concerns about an economic slowdown in the world’s largest economy.
3) Oil prices fell today but still remained at elevated levels. Brent crude futures were at $74.17 per barrel, down 34 cents, or 0.5%, from their last close. Crude oil prices for spot delivery rose to 6-month highs earlier in the week after the US said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.
4) Domestic stock markets rebounded today with Sensex surging nearly 500 points.
5) Higher oil prices may put further pressure on India’s macro, says analysts. “Any further increase in crude oil prices to over $75/barrel will put further pressure on India’s macroeconomic position. A $10/barrel increase in oil prices impacts India’s CAD (current account deficit) by around $15 billion(50 bps of GDP)," Kotak Institutional Equities said in a note.