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The Indian rupee slumped to an all-time low against the US dollar on Thursday as the currency comes under increasing pressure from rising oil prices.
The rupee, Asia's worst performing currency according to Bloomberg News, fell to 69.10 against the greenback in early trade before recovering slightly to 68.93 later.
India is a massive importer of oil, securing more than two-thirds of its needs from abroad.
A surge in oil prices over the past year to around $78 a barrel has meant more rupees are needed to purchase crude.
This has put pressure on the Indian currency, making it less appealing to investors who are betting less on the emerging markets as a whole.
That has contributed to a widening of India's current account deficit — when the value of imports exceeds the value of exports.
The strong dollar is affecting the value of currencies across Asia.
On Thursday, Indonesia's rupiah fell to the lowest level since October 2015.
Read more
On DawnNews
Comments (25) Closed
Jun 28, 2018 08:40pm
In Jan 2014 the rupee value was 62 against US dollar and today its 68.9 and you call it Asia's worst performing currency according to Bloomberg, btw where other currencies stand 124 is the best
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Jun 28, 2018 08:45pm
Lets not point fingers when our own Rupee is trading at twice where it was 10 years ago against Dollar.
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Jun 28, 2018 08:48pm
Cheap exports
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Jun 28, 2018 09:07pm
Good for exports. With more exports rupee will strengthen, especially with a growing economy like India.
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Jun 28, 2018 09:07pm
More reasons to increase our own petroleum products' prices.
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Jun 28, 2018 09:08pm
This is how you manage currency. Let it float as per market conditions. Pakistan was unwise in holding its currency to an artificial level and now facing the consequences. Also this fall in INR nullifies whatever Pakistani exports might have hoped to gain from depreciation of its own currency.
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Jun 28, 2018 09:16pm
This is helping India's exports.
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Jun 28, 2018 09:32pm
More incentive their is to go Solar, better it is for everybody. About time we give up oil, set up solar at home and use electric vehicles charged with Solar Energy.
If even 25% of the people do this, we will save billions, help the environment and force oil based countries to reform in the interest of their own people. The only time I go to a petrol station these days is to get Nitrogen for my electric car tires.
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Jun 28, 2018 09:33pm
Modi should join China's OBOR initiative for an economically stronger asia!
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Jun 28, 2018 09:41pm
Everything is absolutely under control
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Jun 28, 2018 09:44pm
These are normal movement of Indian rupee and yes oil price will affect it and other oil importing countries. This also makes Indian exports become cheaper.
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Jun 28, 2018 10:08pm
Care about your own..
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Jun 28, 2018 10:09pm
seriously look at your own current deficit and your current value against US $.
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Jun 28, 2018 10:24pm
It's not only India, all emerging countries are facing currency devaluation, chinese yuan has fallen 3% in just two weeks. Just in May turkish lira touched fresh evertime lows.Dollar is gaining strength with improving USA strength, so it is worldwide phenomenon, which is cyclical in nature
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Jun 28, 2018 11:21pm
Great news. Now the Indian exports will be sky rocketed and it will have a better effect on their country's balance sheet.
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Jun 29, 2018 01:12am
Excellent. Now they will get a lot more rupees and a lot less merchandise.
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Jun 29, 2018 02:16am
In late 1960s US$ was equal to Pak Rs 4.90 while Indian Rs was 8.50. to a $. Look what has happened in so called democracy of Pakistan.
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Jun 29, 2018 02:36am
Twice the value of Pakistani Rupee
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Jun 29, 2018 06:05am
All emerging markets currencies slumped. INR has habit of being the best currency when conditions suit and worst performer when conditions are against. However it should be noted that in 2013 when inr hit an all time low, it was entirely India's own mismanagement.
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Jun 29, 2018 06:17am
The fall in values of Pak Rupee,Indian Ruper, and other Asian currencies, have reason behind the ongoing trade wars, initiated by big powers. The need for regional prosperity and cooperation is more today than never before. Like Euro in Europe, let us sit together and introduce new Asian Currency for India,Pakistan,BD, including South East Asia, and declare grand trade alliance. We have everything we need. No need to buy goods from faraway lands.
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Jun 29, 2018 07:03am
Don't worry it's manageable
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Jun 29, 2018 10:04am
3-5% Fluctuation is always better than 20-25% devaluation.
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Jun 29, 2018 11:44am
Thanks to Modijeeeeee's policies.
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Jun 29, 2018 12:42pm
@Reza Mehmanparast Not exactly it has more damage than good. We are totally dependent on oil imports and any increase harm our economy. India needed to diversify its energy resources by exploring and creating more renewable enregy resources which are lying unused.But successive corrupt govt only care about winning election after election.Whenever pricea rises we start talking about renewables and only talk creat nothing. Our PM and ministers are busy in travelling from one state to another who has election in near future.We have issue of unemployment and Congresa take entrance exam for becoming their spokespersons. Soon people will realize that BJP is not different than them.
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Jun 29, 2018 04:45pm
Seems like I have been brainwashed by nationalists Indians because what they say on Social media is that after USA their economy is best in the world and I actually believed them without any hesitation as their words were hard to be doubted
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