Indian rupee weakens, 1 year forward tops ₹100 per USD
Business
The Indian rupee just hit a new low: its one-year forward rate crossed ₹100 per US dollar.
In regular trading, the rupee also slipped to ₹96.96 before settling at ₹96.82, mainly because global interest rates aren't working in India's favor.
PSBs selling dollars to support rupee
Rising oil prices (thanks to West Asia tensions) and smaller interest rate gaps between India and the US are making rupee investments less appealing.
To keep things from getting worse, public sector banks (probably nudged by the RBI) have been selling dollars to stop the rupee from falling past ₹97.
Plus, Indonesia's recent rate hike and talk of possible US Fed hikes are adding extra pressure on currencies like India's.