Indian Rupee Hits Record Low on Trade Fears

June 28, 2018 Share Print 0

India’s rupee is the latest currency to be dragged down by fears that a trade war could hurt global economic growth.
The rupee dropped to a record low against the US dollar on Thursday, a slide fueled by fears over trade conflicts and higher oil prices that could drag down the major energy importer’s economy. The stronger dollar and expectations of higher US interest rates were also major factors in the rupee’s fall.

A growing number of emerging markets are coming under pressure from the same forces. The Argentine peso and Turkish lira are among the hardest hit, falling in recent weeks to all-time lows against the US dollar.
Global investors are moving their money from foreign markets to the United States to capitalize on a strengthening economy and rising interest rates. Meanwhile, the risk of a global trade war has intensified concerns about a broad economic slowdown outside the United States that would hammer emerging markets.

Via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.