The Indian rupee slumped to an all-time low in opposition to the US greenback on Thursday because the foreign money comes below growing stress from rising oil costs.
The rupee, Asia’s worst performing foreign money in accordance with Bloomberg Information, fell to 69.10 in opposition to the buck in early commerce earlier than recovering barely to 68.93 later.
India is a large importer of oil, securing greater than two-thirds of its wants from overseas.
A surge in oil costs over the previous yr to round $78 a barrel has meant extra rupees are wanted to buy crude.
This has put stress on the Indian foreign money, making it much less interesting to buyers who’re betting much less on the rising markets as a complete.
That has contributed to a widening of India’s present account deficit when the worth of imports exceeds the worth of exports.
The robust greenback is affecting the worth of currencies throughout Asia.
On Thursday, Indonesia’s rupiah fell to the bottom degree since October 2015.