Indian rupee breaks 69 vs dollar for first time; down over 8% in 2018

After opening at all-time low the Indian rupee fell further and break the important level of 69 per dollar mark.

It has opened at 68.89, down 28 paise versus previous close 68.61. It has weakened by over 8 percent for the year 2018.

The increasing crude oil prices and trade war concern between US and China are the reasons behind rupee weakening.

In the previous session rupee posted the biggest single session fall against dollar since June 19. It has closed lower by 37 paise at 68.61 against Tuesday’s close of 68.24.

Yesterday, rupee fell to the lowest level in 18-months against the US dollar following sharp surge in global crude oil prices and strength in the dollar against its major crosses. Post the OPEC announcement, last week, crude prices have been finding support on lower levels and subsequently keeping the currency under pressure. Weakness in the Chinese Yuan and other emerging market currencies including the rupee are under pressure against the US dollar, said Motilal Oswal.

On the domestic front, market participants will be keeping an eye on fiscal deficit number that will be released tomorrow; lower-than-expected number could support the rupee that has been under pressure. Today, USD-INR pair is expected to to quote in the range of 68.70 and 69.20, it added.