The Indian rupee on Tuesday hit a low of Rs 79.36 against the US dollar and experts expect further depreciation.
In a research report, Kotak Securities said the dollar will touch Rs 80 in the near term.
Kotak Securities said the widening trade deficit, narrowing of interest rate differentials, and Reserve Bank of India’s foreign exchange intervention strategy (sell spot along with buy-sell swaps) leading to a collapse in forward premiums, led to relatively sharp depreciation in the rupee recently.
Citing the uncertainty in the global macro environment, the report said the Indian rupee is likely to be under pressure, especially if crude prices remain elevated and global growth slows down.
On the other hand, the price of 24 carat gold touched Rs 54,000 per 10 grams on Tuesday.