Rupee falls to 19-month low, gold losing glitter

SAMUEL KUTTY

MUSCAT: The Indian rupee continued its plunge striking a 19-month low against the dollar on Wednesday.This means one Omani rial at existing level fetches above Rs 178. Reports suggest that the Indian rupee been under intense pressure, having actually lost about 6.7 per cent to the greenback till Tuesday.It was trading at an intra-day 68.54, down 30 paisa, against the greenback on Wednesday amidst trade war stress and rising crude rates. "The present complimentary fall that the Indian rupee currently witnessing is primarily due to the rise in

the worldwide prices of crude", said Madhusoodanan, General Manager of Global Cash Exchange.Brent crude costs increased more than 2 percent on Tuedsday to climb up back above the$76 per barrel mark as the US pushed allies to halt imports

from Iran.India imports 80 percent of its oil requirements and higher oil prices risks broadening India's existing account deficit."Any variation in trade deficit will impact the exchange rates of rupee. This is reflective from the rise in the crude rates as India needs to shell out more dollars to buy oil ", he said.A weak rupee against the dollar makes imports costlier. Some imports can not be cut down such as oil, which can negatively impact India's existing account deficit.Meanwhile, gold rates experienced more drop with the cost of 22k gold dipping to practically RO

15.400 per gram."The dip in the gold rates will absolutely encourage customers to revisit the stores to purchase more jewellery ", stated Najeeb K, Reagional Head of Malabal Gold and Diamonds.The bullion has actually taken a whipping from a stronger United States dollar and decline in need from gold consumers in India and China.

"The outlook on gold for the rest of the year is still extremely bullish and financiers should take this dip as a purchasing opportunity, "stated Najeeb.Rajesh Govindan, Handling Partner of Cochin Gold said there has not been considerable increase in the sales as lots of people are on leave thanks to the summertime vacation." The sales pattern remains the very same during every year during the season in spite of the modifications in the prices. Consumers have actually done a lot of purchases during the current Eid celebration", he said.Meanwhile, gold rates saw further drop with the cost of 22k gold dipping to nearly RO 15.400 per gram. "The dip in the gold rates will certainly encourage clients

to review the shops to buy more jewellery ", stated Najeeb K, Reagional Head of Malabal Gold and Diamonds.The bullion has taken a pounding from a stronger United States dollar and decline in demand from gold customers in India and China.

"The outlook on gold for the rest of the year is still really bullish and investors need to take this dip as a buying

opportunity,"stated Najeeb.Rajesh Govindan, Handling Partner of Cochin Gold stated there has actually not been considerable rise in the sales as many individuals are on leave thanks to the summer season vacation.

"The sales pattern remains the very same throughout every year during the season in spite of the modifications in the rates. Clients have done a lot of

purchases during the current Eid festival ", he said.The post Rupee falls to 19-month low, gold losing shine appeared initially on Oman Observer.

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