Indian Rupee Falls To Record Low Against U.S. Dollar
(RTTNews) - The Indian rupee weakened against the U.S. dollar in the early European session on Thursday, as market mood was affected by uncertain oil prices and poor domestic stocks.
Shipping delays in the key Strait of Hormuz cause oil prices to soar.
Crude continued to rise as big economies' synchronized release of oil stockpiles was overshadowed by the possibility of a protracted confrontation in Iran.
Even after the International Energy Agency (IEA) agreed to its largest-ever release of 400 million barrels, markets still saw the emergency supply measures as inadequate.
Meanwhile, expectations that the Federal Reserve (Fed) will soon lower interest rates have decreased as a result of rising energy prices, which have increased forward-looking inflation risks and kept the U.S. dollar strong.
Price pressures appear to be largely restrained, according to recent inflation statistics, which supports predictions that the Fed may maintain policy in the near future. Additionally, analysts pointed out that the most recent inflation statistics do not yet adequately reflect the recent spike in oil prices brought on by global unrest.
For more policy hints, traders will now concentrate on the US Personal Consumption Expenditures (PCE) data, which is due on Friday.
Against the U.S. dollar, the rupee declined to a record low of 92.50 from yesterday's closing value of 92.23.
If the rupee extends its downtrend, it is likely to find support around the 93.00 region.
Looking ahead, Canada and U.S. trade data and building permits for January and U.S. weekly jobless claims data are slated for release in the New York session.
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