©Reuters. The Indian rupee falls to 79.37 units per dollar and marks a new minimum
New Delhi, Jul 5 (.).- The Indian rupee marked another historic drop this Tuesday when it changed to 79.37 units per dollar, accumulating a depreciation of 6% so far this year, amid concerns about the current account deficit.
The Indian rupee (INR) posted a new record by trading at 79.37 per dollar, losing nearly six units so far this year, moving closer to the imaginary barrier of 80, according to the rate interbank exchange.
“High oil prices increase India’s import bill which, consequently, weighs on the rupee, given that India is the third largest oil importer in the world,” the financial consultancy firm EForex pointed out in its analysis of the day. India.
The international increase in crude oil prices has been a determining factor in the volatility of the Indian currency, while this country, with 1,350 million inhabitants, imports 85% of its domestic consumption, which translates into a greater deficit in the balance commercial.
India’s exports increased by 16.8%, reaching 37.9 billion dollars last June, the highest amount in history, according to a report published yesterday by the Ministry of Industry and Commerce.
Still, the rise in Asian indices on Tuesday generates confidence for investors in the region, which is a favorable scenario for the Indian currency, according to the financial consultancy.
Likewise, the Government has begun to implement preventive actions on the market, including the increase of import duties on the , which could underpin the fall of the rupee.
The measure announced last week imposes an increase in the import tariff on gold from 7.5% to 12.5%, which would translate into a reduction in the current account deficit, since India imports most of its demand.
The Reserve Bank of India (RBI, central bank) has also issued measures to try to rein in the country’s inflation, and analysts expect further intervention to stem the depreciation.