Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Rupee At A New Low Of 70.59 Against Dollar

The Indian rupee fell to a new low, continuing its run as the worst-performing currency in Asia.

The Indian unit weakened 0.6 percent to 70.59 against the U.S. dollar. The rupee, which had touched the previous low of 70.3950 on Aug. 16, has depreciated 9.5 percent so far this year.

Rupee At A New Low Of 70.59 Against Dollar

Asian currencies declined after strong U.S. consumer confidence data aided the dollar, Bhaskar Panda, senior vice-president, treasury advisory group, HDFC Bank, told BloombergQuint.

After breaking 70.39, we expect the rupee to depreciate a little further and consolidate around 70.80 levels. Settlement of futures contract due to expiry has been weighing on the rupee. That apart, month-end dollar demand from importers adds to the pressure.
Bhaskar Panda, Senior Vice-President, Treasury Advisory Group, HDFC Bank

The rupee is on track to fall for the seventh straight month in August, its longest losing streak in nearly 18 years. The local unit has declined 2.9 percent so far this month.

Abhishek Goenka, founder and chief executive officer at India Forex Advisors, attributed the fall to “huge forex-related buying on account of exchange traded currency F&O expiry.” The near-term outlook, he said, is bearish for the Indian currency with U.S. yields heading higher, and dollar index looking supported amid higher crude prices.

Also read: How A Weaker Rupee Will Impact India Inc.