News Column

Indian currency may slide further

June 18, 2014


Muscat: Indian rupee is likely to depreciate further in the coming months, mainly due to a better demand for the United States dollar in view of surging oil prices in international markets, an expert said here on Wednesday.

"Rupee can go back to the previous level of Rs64 a dollar. If it goes to that level, it is an increase of 6.5 per cent over the existing exchange rate. The dollar is going to be in demand and to that extent, it is estimated that it can peak over the next four to five months," Sudhesh Giriyan, vice- president and business head of Xpress Money told 'Times of Oman' here on Wednesday.

Iraq crisis

"If Iraq crisis continues, dollar will continue to be in demand (in India)," he added.

Giriyan said the Indian rupee depreciated due to a balance of payment crisis, exports were not growing. However, he said, the euphoria over the formation of new federal government reversed the trend and rupee started appreciating. He noted that rupee hovering around 60 against a dollar is ideal. "If it goes below, it will not help exports from India."

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Source: Times of Oman

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