Rupee may depreciate to hit a record low at 70 to the dollar by the end of this year
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As rupee lost nearly 10 paise and closed at 68.47 at over two-year low, there are chances that rupee may hit a record low at 70 to the dollar.
The poll revealed that rupee would slip to 72 against the dollar by December.
The depreciation of rupee does not reflect theIndian economy but paints a reality picture of global economy.
The sliding rupee, as per experts, could also help exports that have fallen for 14 months in a row.
Hitting to a new record low, rupee has been one of the worst-performing currencies in 2016.
“Risk aversion has taken centre stage with lower oil and commodity prices since the beginning of this year. There have been outflows from emerging market equity and debt funds, mainly on the back of withdrawals from institutional investors. Personally, I expect the rupee to weaken to 69.25 by March," MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank told ET.
Where investors pulling out are concerned, the fear is over US going back into recession.
India is still preferred among emerging markets by brokerages such as CLSA and Morgan Stanley.
"Rising bond yields are a concern for overseas investors, who now may be looking to exit domestic debt securities amid increasedcurrency market volatility," Anindya Banerjee, associate vice-president for currency and interest rate derivatives at Kotak Securities told ET, adding "Some option trades are already signalling future fund outflows."
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Global investors are worried over market uncertainty and are pulling out funds. As per a poll by ET, the slump will further to a new low by the end of the year.The poll revealed that rupee would slip to 72 against the dollar by December.
The depreciation of rupee does not reflect the
The sliding rupee, as per experts, could also help exports that have fallen for 14 months in a row.
Hitting to a new record low, rupee has been one of the worst-performing currencies in 2016.
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“Risk aversion has taken centre stage with lower oil and commodity prices since the beginning of this year. There have been outflows from emerging market equity and debt funds, mainly on the back of withdrawals from institutional investors. Personally, I expect the rupee to weaken to 69.25 by March," MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank told ET.
Where investors pulling out are concerned, the fear is over US going back into recession.
India is still preferred among emerging markets by brokerages such as CLSA and Morgan Stanley.
"Rising bond yields are a concern for overseas investors, who now may be looking to exit domestic debt securities amid increased
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