Indian Rupee collapses to all-time low against US dollar
Collapse of Indian rupee to a lifetime low of 69.10 against the US dollar will not give an extra edge to domestic exporters, but provide a level playing field in global market, FIEO today said.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the development will not provide any additional support to exporters as currencies of other emerging economies, including China, too are depreciating.
“It will provide a level playing field to our exporters. It will not provide a much needed support as India is not singled out,” Sahai said.
India’s exports grew 20.18 per cent to USD 28.86 billion in May — the highest in six months, even though the trade deficit widened to a four month high of USD 14.62 billion.
During 2017-18, the exports grew by about 10 per cent to USD 303 billion.
The rupee has touched a lifetime low of 69.10 against the US dollar by plunging 49 paise in early trade today as rising crude oil prices deepened concerns about the country’s current account deficit and inflation dynamics.
Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.
Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher.