India's rupee weakness set to continue

New Delhi - The rupee might devalue further towards the 68-level mark which was last seen in 2013.

The global financial turmoil, coupled with fears of further Chinese yuan devaluation and a slowdown in the domestic economy, are expected to hasten depreciation of the Indian rupee in the coming week, experts said on Saturday.
"The rupee value is expected to depreciate further on the back of weak global cues such as the ongoing financial turmoil, slump in commodity prices and risk of further yuan devaluation," Anindya Banerjee, associate vice-president for currency derivatives with Kotak Securities, said.
"The rupee might devalue further towards the 68-level mark which was last seen in 2013. At that point, we can expect a heavy intervention from the Reserve Bank of India [RBI] to stabilise the rupee value," Banerjee said.
Market observers have predicted the rupee will hover around 66.5 to 67.5 to a US dollar in the coming week.
"USD/INR level wise, we see a key resistance at 67.7/75. A break will certainly lead the pair towards 68 and above level," Hiren Sharma, senior vice-president, currency advisory at Anand Rathi Financial Services, said. "Anxiety about crude and China markets has drawn the markets to a state of oblivion."
Another key area of concern for rupee has been the increased outflows of foreign funds from equity and debt markets.

• India