Rupee hits new low, further depreciation likely


New Delhi, Jun 10 (IANS): 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 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 per cent as against its previous estimate of 4.1 per cent in January also depreciated the currency, Sachdeva said.

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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Title: Rupee hits new low, further depreciation likely



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