GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
1-min read

Rupee at Historic Low, But SBI Says It is Still Overvalued, No Need to Panic

Thought the rupee value has been the worst among the emerging market peers, SBI managing director PK Gupta assures that the rupee has been faring better than Turkish, Argentinean, and Indonesian currencies.


Updated:August 31, 2018, 7:15 PM IST
Rupee at Historic Low, But SBI Says It is Still Overvalued, No Need to Panic
Illustration by Mir Suhail/News18.
Mumbai: Even as the rupee breached the crucial 71 level plumbing a new life-time low today, State Bank said one should not get too much worried about a "little bit of depreciation" as the currency is still "overvalued".

The rupee has been the worst among the large emerging market peers, losing over 10 per cent from the beginning of the year. But SBI managing director PK Gupta told reporters that the rupee has been faring better than many of its peers, including the Turkish, Argentinean, and Indonesian currencies.

"You need to look at what's happening globally. Argentina, Indonesia...most of the currencies are losing against the dollar. In fact, the fall of the rupee against the dollar has been much lesser compared to most other currencies," Gupta said.

"I don't think the value of the rupee is so much of a concern now. The unit is overvalued in any case. A little bit of depreciation should not impact too much at this stage," he added.

The rupee slumped to a fresh record low of 71 against the dollar for the first time ever by falling 26 paise on persistent demand for the greenback amid rising crude prices and projection of a further spike going ahead.

At the interbank foreign exchange market, the rupee opened sharply lower at 70.95 and slipped further to hit its lifetime low of 71 from its previous close of 70.74.

Forex dealers said besides robust month-end demand for the dollar from oil importers, the strength of the dollar is rising against its rival currencies on expectations of rising interest rates in the US amid lingering trade wars between the US and China, weighed on the domestic currency.

On Thursday, the rupee slid 15 paise to close at a fresh lifetime low of 70.74 due to strong demand for the greenback from oil importers and surging crude prices, stoking inflation fears which anyway has been on a northward ho for the past many months now.

Growing fears about rising inflation amid high global crude prices and consistent selling by foreign funds from the domestic equity markets also weighed on the rupee. Benchmark Brent crude was at trading at USD 78 a barrel in early Asian trade.
| Edited by: Naqshib Nisar
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Bank of Baroda 116.35 +3.25 +2.87
Reliance 1,210.75 -6.40 -0.53
SBI 271.50 -2.30 -0.84
HDFC Bank 1,961.35 -27.85 -1.40
HDFC AMC 1,408.85 -127.35 -8.29
Company Price Change %Gain
Oracle Fin Serv 4,103.15 -158.70 -3.72
Maruti Suzuki 8,207.00 -193.10 -2.30
Reliance 1,210.30 -6.90 -0.57
HDFC AMC 1,408.55 -131.65 -8.55
Bank of Baroda 116.30 +2.85 +2.51
Top Gainers
Company Price Change %Gain
BPCL 365.05 +9.95 +2.80
Coal India 280.65 +7.45 +2.73
GAIL 384.55 +9.75 +2.60
Tech Mahindra 769.95 +15.25 +2.02
ONGC 177.00 +3.10 +1.78
Company Price Change %Gain
Coal India 280.55 +7.10 +2.60
ONGC 176.65 +3.30 +1.90
Tata Steel 620.45 +8.00 +1.31
Hero Motocorp 3,142.35 +30.70 +0.99
Kotak Mahindra 1,227.00 +10.75 +0.88
Top Losers
Company Price Change %Gain
Bajaj Finserv 6,312.05 -215.55 -3.30
IndusInd Bank 1,804.65 -57.50 -3.09
Zee Entertain 450.80 -13.75 -2.96
Bajaj Finance 2,499.55 -70.85 -2.76
UPL 692.30 -16.75 -2.36
Company Price Change %Gain
IndusInd Bank 1,805.00 -56.45 -3.03
Maruti Suzuki 8,207.00 -193.10 -2.30
HDFC Bank 1,961.95 -31.40 -1.58
Yes Bank 318.50 -4.65 -1.44
HDFC 1,831.15 -25.00 -1.35

Live TV