Friday, July 12, 2024
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Rupee hits new low, further depreciation likely

The Indian rupee touched a new low of Rs 77.87 per US dollar on Friday after a prolonged phase of consolidation as inflationary risks have soured.

The rise in crude prices towards three-month highs owing to supply tightness is further accentuating inflation concerns and inflicting damage on the global economy and the value of the currency, said Sugandha Sachdeva, Vice President – Commodity and Currency Research at Religare Broking.

Besides, the World Bank slashing its global growth forecast to 2.9 percent as against its previous estimate of 4.1 percent in January also depreciated the currency, Sachdeva said.

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Going ahead, the rupee is expected to depreciate towards the Rs 78.20-mark in the near term and Rs 78.50 in the medium-term perspective.

For fresh cues, inflation data in the US will be a key indicator for the rupee movement.




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