The Indian rupee slumped to an all-time low in opposition to the US dollar on Thursday as a result of the international cash comes under rising stress from rising oil prices.
The rupee, Asia’s worst performing international cash in accordance with Bloomberg Data, fell to 69.10 in opposition to the buck in early commerce sooner than recovering barely to 68.93 later.
India is a big importer of oil, securing better than two-thirds of its needs from abroad.
A surge in oil prices over the earlier yr to spherical $78 a barrel has meant further rupees are needed to purchase crude.
This has put stress on the Indian international cash, making it a lot much less fascinating to patrons who’re betting a lot much less on the rising markets as an entire.
That has contributed to a widening of India’s current account deficit — when the price of imports exceeds the price of exports.
The strong dollar is affecting the price of currencies all through Asia.
On Thursday, Indonesia’s rupiah fell to the underside diploma since October 2015.