The rupee, along with the Indonesian rupiah and Philippine peso, will continue to be the most vulnerable in Asia, said an ANZ Research note. “The INR (Indian rupee) is expected to continue to face depreciation pressures during the remainder of 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,”IHS Markit Asia-Pacific Chief Economist Rajiv Biswas, said in an email to CNBC.
India’s foreign reserves have been affected by these developments. “A challenging global environment has compelled the Reserve Bank of India (RBI) to intervene aggressively this year to contain rupee depreciation, the draw down in foreign reserves has been significant,”DBS analysts said in a recent note.
- The Indian rupee depreciated this week by ₹1.10 compared with the previous week close.
- Last week Indian rupee closed at ₹70.80 with a loss of ₹1.22 only.
- Last trading day of the week rupee closed at ₹71.90 with a loss of 0.22 paisa.
- Highest gain 0.33 paisa on 13th Dec 2018 and highest fall 0.54 paisaa on 10th Dec 2018.
