India's falling rupee a 'double-edged sword' for economy: analysts
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Mumbai: India's rupee hit fresh record lows Thursday amid warnings that benefits to exporters from a weaker currency would be offset by the higher price paid by Asia's third-largest economy for oil.
The rupee slid to 70.38 to the dollar just two days after crossing 70 for the first time as India got dragged into the turbulence of the Turkish financial crisis.
The rupee has been steadily falling throughout 2018 after starting the year at 63.67.
The weaker rupee will help India sell goods and its huge services sector in overseas markets, but the country is a massive importer of oil, securing more than two-thirds of its needs from abroad.
Any boost to exports will be offset by pressures on inflation and the current account deficit, said the Association of Mutual Funds in India.
"It is a double-edged sword for the Indian economy," chief executive N.S. Venkatesh told AFP.
AFP
