MUMBAI: On Thursday, the Indian rupee drooped to an all-time low against the US dollar as currency comes under escalating pressure from rising oil prices.
The Indian rupee, Asia’s worst performing currency according to Bloomberg News, fell to 69.10 against the greenback in early trade before recovering slightly to 68.93 later.
India is a massive importer of oil, securing more than two-thirds of its needs from abroad.
An upsurge in oil prices over the past year to around $78 a barrel has ultimately warranted for the need of more rupees to purchase crude.
This has put immense pressure on the Indian currency, making it less attractive to investors who are betting less on the emerging markets as a whole.
That has contributed to a widening of India’s current account deficit — when the value of imports exceeds the value of exports.
The strong dollar is affecting the value of currencies across Asia.
On Thursday, Indonesia’s rupiah fell to the lowest level since October 2015.