The depreciation in the currency can be attributed to the increasing crude prices in the global market and foreign fund outflows.
The Indian rupee started the week on a weaker note and breached the 71-mark in late morning trade on Monday. The domestic currency has depreciated 46 paise to trade at 71.28 against the US dollar vs. its previous close of 70.82/$.
The depreciation in the rupee can be attributed to the increasing crude oil prices in the global market and foreign fund outflows.
Tracking global cues, equity Indian benchmark indices started the week on a negative note, with the Sensex declining 607 points at 35,065-levels. The Nifty too declined 180 points to trade at 10,514-levels.
Further, global crude oil prices rose after the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers, including heavyweight Russia, announced that they would cut oil production by 1.2mn barrels per day (bpd), with 800,000 bpd reduction from OPEC and the rest from non-OPEC members.
Additionally, cautious trading ahead of the outcome of the state assembly elections could also have an impact on the currency. Madhya Pradesh, Chhattisgarh, Rajasthan, Mizoram, and Telangana are currently holding assembly elections, the results for which will be out on Tuesday (Dec. 11). The result will be seen as a warm-up for the general elections in early 2019.
The depreciation in the rupee can be attributed to the increasing crude oil prices in the global market and foreign fund outflows.
Tracking global cues, equity Indian benchmark indices started the week on a negative note, with the Sensex declining 607 points at 35,065-levels. The Nifty too declined 180 points to trade at 10,514-levels.
Further, global crude oil prices rose after the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers, including heavyweight Russia, announced that they would cut oil production by 1.2mn barrels per day (bpd), with 800,000 bpd reduction from OPEC and the rest from non-OPEC members.
Additionally, cautious trading ahead of the outcome of the state assembly elections could also have an impact on the currency. Madhya Pradesh, Chhattisgarh, Rajasthan, Mizoram, and Telangana are currently holding assembly elections, the results for which will be out on Tuesday (Dec. 11). The result will be seen as a warm-up for the general elections in early 2019.
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