Dubai: The Indian rupee hit its lowest level in 16 months on Wednesday, and industry experts are expecting more weakness going ahead.
The currency traded at 67.90 to a dollar, after falling to a low of 68.13, a level last seen in last quarter of 2016.
“The Indian rupee has hit a 16-month low against the US dollar on the back of rising oil prices and retaliatory inflation balancing. This is not just the case with the Indian Rupee, as almost all currencies have fallen while the global stock market has also remained flat,” Adeeb Ahamed, Managing Director, LuLu Financial Group, told Gulf News.
“Global economic slowdown and geopolitical situation have also attributed to this volatility. We feel that the Indian rupee can weaken a bit more and possibly even cross the lowest ever against the US dollar,” Ahamed said.
The Indian currency has depreciated by almost 7 per cent in the past 13 weeks. “The rupee went too far in a such a short time because of negative news in terms of data in India and widening fiscal and current account deficit. I see a retracement towards 66.80 levels and I expect the weakness to resume after that. It should take off to 69,” an forex analyst with a local company.
The all-time low was at 68.89 per dollar seen on February 29, 2016 because of a stronger dollar.