Rupee Weakens Further, Hits New Low Against US Dollar: Key Things To Know
The rupee pared some early losses, trading 10 paise lower at 70.69 against the US dollar in late morning deals today, reported news agency Press Trust of India (PTI). The fall in rupee is due to the sustained month-end dollar demand from importers, rising crude oil prices and sustained foreign fund outflows. The Indian currency today slipped to a a lifetime low of 70.90 in volatile trade in morning session. The rupee hovered between 70.62 and 70.90 during morning deals, added PTI.
Here are key things to know:
1. According to traders, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows weighed on the domestic currency today.
2. The dollar strength against its rival currencies overseas too put pressure on the rupee today.
3. “Rupee is under pressure due to month end dollar demand from importers. Sharp rise in the crude oil prices in the international market and weakness in the emerging markets currencies also pressurized the rupee today. Reserve Bank of India (RBI) may intervene selectively around 71.00 to contain volatility. However, no aggressive intervention is expected by RBI”, said Rushabh Maru, Research Analyst, Anand Rathi while speaking to NDTV.
4. On Wednesday, the rupee plunged by 49 paise against the dollar to close at 70.59. That marked the steepest fall in the rupee against the greenback in about two weeks.
5. Meanwhile, the domestic stock market opened on a flat note on Thursday. The S&P BSE Sensex dropped 32.55 points to trade at 38,690.38. The broader Nifty50 fell 11.30 points to trade at 11,680.60.
6. Asian stocks surrendered earlier gains and dipped on Thursday, with Chinese markets fixed firmly on risks from the Sino-U.S. trade war and taking little comfort from an apparent easing in business tensions in North America and Europe.
7. However, oil prices inched today, extending solid gains from the previous session on a fall in U.S. crude inventories and expected disruptions to supply from Iran and Venezuela. (With agencies inputs)
