Mumbai: The rupee is likely to hold at thirteen month lows on Thursday as investors wait for the stock market to gauge overseas appetite for local assets, with a dip in the oil price offering some slight respite from current falls.
The partially convertible rupee ended down 0.8 % at 42.45/46 per dollar on 14th may, off an intraday low of 42.67, which was its weakest since April 13, 2007. It had closed at 42.10/11 on 13th may, and has fallen 4.6 % so far this month.
Oil , India’s biggest import, traded below one hundred twenty four dollar per barrel, after touching a record near one hundred twenty seven dollar on 13th may. High global oil prices raise the risk of widening India’s trade deficit and putting downward pressure on the rupee.
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One Comment
That can be directly effect on the economic growth on the indian infractructure.