Heavy capital outflows, high crude oil prices & huge demand by oil companies are pressuring the rupee.
On Wednesday, the rupee ended 0.8% down at 42.45/46 a dollar, off an intra-day low of 42.67, the weakest since April 13, 2007. It had closed at 42.10/11 on Tuesday.
?There was heavy buying by oil companies. High crude oil prices and low capital inflows added fuel to fire, leading way to a depreciating rupee,” said V Rajagopal, head of currency trading at Kotak Mahindra Bank.
Apart from oil companies, there was heavy dollar demand from other importers as well, putting a downward pressure on the Indian unit.
Rajagopal expects rupee to touch 43-43.20 in a month. ?The Asian countries are poised for a slowdown, as inflows have muted,? he said.