Experts see dip in rupee to continue

Edelweiss added that CAD and balance of payment deficit will continue to weigh on rupee.

Update: 2018-08-21 18:44 GMT
The rupee firmed up by 10 paise to 70.06 against the US dollar in early trade at the Interbank Forex market on Tuesday on selling of the American currency by exporters and banks amid fresh foreign funds inflow.

Mumbai: While the rupee took a breather and recovered from its all time low against the US dollar, forex market participants expects currency volatility to continue amid frictional geo politics, sustained fears of escalation of trade wars into currency wars and possible tightening of global conditions.

“The currency can further see new lows agai-nst the dollar from here on unless we see some sustained stability in global forex space,” said Edelweiss Financial Services. It expects the rupee to move in the range of 68-72 a dollar for remainder of FY19.

On Tuesday, the rupee closed on a flat note at 69.81 a dollar. Last week, the rupee had hit a historic low of 70.40 in the intra-day trade before closing at 70.15 a dollar.

Edelweiss added that CAD and balance of payment deficit  will continue to weigh on rupee.

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