Dubai: The Indian rupee could reach 70 per dollar this week, although the currency may see some temporary strength afterwards, market experts say.
The Indian rupee rose 0.9 per cent to 67.7725, after hitting a high of 67.7113, the highest level since November on the back of a 3 per cent decline in oil prices. The currency touched a low of 68.13 in the previous week, the level seen in the last quarter of 2016.
“I think retracement should towards 67.30/67.50 levels. The dollar has run too much too fast. But the overall the depreciation trend should continue over the medium term. We may see record weakness in the rupee and go beyond that. It may even target 70 levels,” said an analyst, who did not wish to be named.
The currency declined 5.8 per cent against the dollar this year in Asia’s worst performance. The all-time low for the Indian rupee was at 68.89 per dollar seen on February 29, 2016 because of a stronger dollar.
“The Indian rupee continues to slide on account of rising oil prices and the general bearish movement of the equity markets. All currencies, including the euro and pound have also weakened in this context. We believe it might test 68.70 and the highest ever level of 68.89 in the coming few days,” Adeeb Ahamed, Managing Director, LuLu Financial Group, told Gulf News.
