Indian Rupee (INR) plunges record low against U.S. dollar

The Indian Rupee (INR), which strengthened 6.75 percent against the U.S. dollar last year in 2017, has been on a general downtrend and volatile since the start of 2018 and plunges record low. External factors like rising oil prices, higher interest rates, U.S.-China trade war, emerging market currencies depreciation led by Turkish Lira which spurred demand for safe havens; a safe haven is an investment that is expected to retain or increase in value during times of market turbulence, lack of confidence of investors in emerging markets, are compounded currency woes. The Indian currency has been the worst performer in Asia and lost over 8% this year. A weaker rupee and higher oil prices will cause inflation to accelerate, which may prompt the RBI, central Bank of India, to hike interest rates. Though, India has strong macroeconomic fundamentals and forex (foreign exchange) stands at 402703.4 million US$ (Source: RBI, as of 3 August 2018), it has not been able to contain the volatility.