The Indian rupee declined today to its monthly minimum level on the Forex market as the domestic companies had to purchase more U.S. dollars to pay for the imports, including oil.
It was the second bearish day for the rupee, which is under pressure from the widening current account deficit (which is a great problem for another Asian currency South Korean won). Imported goods prices, including oil and commodities, rise sharply spurring the demand for the dollars and creating a vast offer of rupees on the market.
Countrys overall imports rose 30.5% in February, while oil imports increased 39.5% that month. Trade balance deficit in February rose to $4.229 bilion according to the April 1st report.
USD/INR rate rose to as high as 40.128 (its highest level since beginning of April) on Forex market today, it retreaded slightly then and closed at 40.055.
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