Zee Media Bureau
Staying on a downward trajectory for the fifth straight session, the rupee tumbled 69 paise to a nearly 2-year low to 64.88 on Wednesday due to appreciation of the dollar overseas after China devalued the yuan for the second straight day.
Here are the 5 key reasons of rupee's depreciation:
-Sustained dollar demand from banks and importers in view of a higher dollar overseas following yuan devaluation.
-China's surprise decision to devalue the yuan sparked a sell-off in global currencies. The ones that were worst hit were those from economies whose exporters either rely on Chinese companies to buy their products or compete with their exporters for customers.
- Heightened concerns about capital outflows in the face of imminent US interest rate hike also weighed on the local currency.
-Appreciation of the dollar overseas after China devalued the yuan for the second straight day.
-Persistent fall in equity market also dented the rupee movement.
