The Indian rupee hit a record low of 59.9850 against US dollar in a recent trading session as foreign investors continue to pull out of their investment in the Indian stock market and bonds.
With the considerable depreciation in the Indian rupee, traders are expecting the Reserve Bank of India to step in to sell dollars to arrest further weakening. The Indian currency depreciated 11 percent since May 2013. This will adversely impact capital-intensive sectors and firms with foreign borrowings and those who import raw materials heavily.
Analysts point out that automobiles, capital goods, petroleum, power and telecom companies will bear the brunt of a weak rupee.
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