Economic speculation, especially in the crude-oil industry is driving the currencies of all over the world to a constant low. New York has reported 3.5% gain in the crude oil prices, in addition to the 9.1% advance that was made in October. This has been the biggest increase in the last 7 months. India produces only a quarter of oil it uses and imports the rest. As a result, rupee has dropped in value and Indian stock market experts are worried that this will slow down buyers’ interest further.
Another drag on the rupee is taken by the negative trends in Asian equities. The rupee weakened 0.1 % to 47.104 per dollar as of 9.50 a.m. in Mumbai. However, Indian currency is still the forth best performance among the rest of Asian currencies. The overall gain is the currency is 3.6 % so far in the current year.
Some of the offshore investment companies have predicted that the rupee will gain from the low to trade at 47.15 to the dollar by the end of November. Reserve Bank of India Governor Y.V. Reddy has said “the declining India’s currency is due to global uncertainties that the whole world is facing. These uncertainties have been taken into consideration in the bank’s policies. Some of these uncertainties have already been analysed and indicated in the core policies of the bank. ”
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