The rupee closed at a record closing low of 83.1475 to the dollar on Thursday. However, it pared some losses on Friday, trading at 83.0850 against the U.S dollar by 11:10 a.m. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services: "Adding to the negative sentiment in stock markets, the rupee depreciated to near a 10-month low at 83.14, while the PH outflow of almost Rs 100 billion in August so far also led to selling at higher levels.”
Analysts opine the Indian Rupee is bound to see some weakness in the near term. "There will be some amount of weakness (in Rupee) because after all, number one, the people are not sure whether Fed itself is done (hiking). Number two, these are seasonally weak months for the rupee any which way," said Indranil Sengupta, CLSA India in an interview with ET Now.
India, an import-dependent country, could feel the heat of a falling Rupee in an inflationary environment as it stands to further impact the spending decisions of households.
Source: economictimes.indiatimes.com
