The INR (Indian rupee) has faced many depreciation pressures during 2018, reflecting several factors including further US Fed rate hikes, India’s widening current account deficit, and negative global investor sentiment towards emerging market currencies and assets.  Rebounding oil prices and India’s unrelenting demand for it will push up oil imports and widen its current account deficit, which measures the flow of goods, services and investments into and out of the country. The Indian economy does not make a smooth ride with increase in oil prices set to continue weighing on its already-weakened currency, widen its deficit, and affect its growth outlook. That widening deficit will result in a weakening rupee, they say, as more imports mean India has to buy more foreign currencies to meet its needs. Brent crude prices, which went up as high as $80 per barrel in early October, will continue to have its dominance on the Indian equity market. Even though crude prices have come down to $50 per level as of now, there are chances it might go up in 2019. “We see a possibility of further restraint on Iran oil exports from the US government once the 180-day waiver period expires in early-May 2019.

• The Indian rupee depreciated this week by ₹0.06 compared with the previous week close.
• Last week Indian rupee closed at ₹71.18 with the aggregate gain of ₹0.01.
• This week on Friday i.e. today closed at ₹71.24 with the loss of 0.17 paisa.
• Highest gain ₹0.08 on Monday and highest fall ₹0.17 on Friday