Rupee hits new low of Rs 70.74
Oil prices soared higher following reports about fall in US inventory level and likely disruption in supply from Iran and Venezuela.
Mumbai: Rupee slumped to a fresh low on Thursday amidst weakness in emerging market currencies as surge in global crude oil prices renewed concern regarding India’s current account deficit.
The rupee hit a record low of 70.86 a dollar in the intra-day trade before closing the day at 70.74 a dollar, down 0.20 per cent from its previous sessions close of 70.59.
Oil prices soared higher following reports about fall in US inventory level and likely disruption in supply from Iran and Venezuela.
According to a report released by Kotak Institutional Equities, a $10 per barrel change in crude oil prices results in 50 basis point impact on current account deficit and GDP and 30 basis point impact on domestic inflation. It added that India’s macro position would worsen if oil prices were to shoot above $80 per barrel.