The Indian National Rupee (INR) refreshed all-time lows against its American rival just shy of the 71 handle in the opening trades on Wednesday, tracking the sell-off in the Emerging Market (EM) currencies that roiled the market sentiment.
The USD/INR pair quickly reversed a spike to 70.90 and now trades near the 70.50 level, as the weakness in the Yuan, Lira and Rouble has put a strong bid under the US dollar, helping push the greenback to the highest levels since June 2017 when compared to a basket of six major currencies.
It’s worth noting that the rupee has fallen nearly 9% so far this year against the US dollar. Apart from the Turkey turmoil, concerns over India’s current account deficit amid higher oil prices weigh also exacerbated the pain in the Rupee.
On Tuesday, a senior Indian Finance Ministry official blamed the “external factors” for the Rupee’s slide.
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