The Indian rupee has been having a rough ride this year. Reuters
The Indian rupee has been having a rough ride this year. Reuters

Rupee slides to new record low against US dollar



India's rupee hit a new low against the US dollar on Thursday, falling to 70.82 at one stage in morning trading.

This came on the back of a plunge of 49 paise against the dollar on Wednesday when it closed on 70.59.

The rupee has been steadily falling throughout 2018 after starting the year at 63.67.

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Read more: 

Good and bad of the Indian rupee’s decline

UAE residents cash in as tumbling euro and rupee sparks buying boost 

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India was buffeted by the turbulence of the Turkish financial crisis earlier this month, and an emerging market currency sell-off has continued in recent days.

The slump in rupee will likely see a continued high level of remittances by Indian expatriates in the UAE, with exchange houses in the emirates reporting a rise a couple of weeks ago when the rupee was at 69.92.

The rupee slump is widening India's current account deficit, when the value of imports exceeds that of exports.

Rising crude oil prices, higher US interest rates and global trade war fears have also boosted the greenback.

India's central bank has raised interest rates this year in part to help increase the value of the rupee.

Brent crude oil gained 12 cents to $77.58 this morning, while West Texas Intermediate was trading at $69.64 at 9.50am in Tokyo, up 13 cents since opening.

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