Rupee Hits All Time Low, Heading For 70 And Beyond
The dollar's sharp gain overnight coupled with falls in Asian peers caused the drop in early trade.
The Indian rupee touched its lowest ever on Thursday 28th June, crossing 69 to a dollar mark, pummeled by high crude oil prices, geo-political concerns and looming fears of a global trade war.
The rupee recovered marginally from its lifetime low to trade at 68.95 per dollar in late morning deals amid heavy month-end demand for the American currency from importers and banks.
The rupee's last record low was 68.8650 per dollar, hit on November 24, 2016.
The dollar was, however, steady against its peers on Thursday, having failed to extend overnight gains amid conflicting signals from Washington on a proposal to restrict Chinese investment as the bitter US-China trade row kept financial markets on edge.
On the domestic front, a widening current account deficit (CAD) due to higher global crude oil prices and steady capital outflows have weighed on the rupee this year.
Oil prices have been rallying for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
According to market indicators, rupee is overvalued, and has possibly more room for weakness against the US Dollar which could even take the rupee towards Rs 70/USD and beyond in coming days.