Markets

Rupee slips 14 paise to 69.83 against U.S. dollar

Sliding for the second straight day, the rupee lost 14 paise to close at 69.83 against the U.S. dollar on May 29 as investors sought safe-haven currencies like the greenback and yen amid global growth concerns.

The rupee has now depreciated by 32 paise in two sessions.

Forex traders said persistent foreign fund outflows and a sell-off in domestic equities kept pressure on the local currency. However, easing crude oil prices cushioned the fall.

Globally, the U.S. dollar and Japanese yen strengthened after the 10-year U.S. bond yields slipped below the 3-month rates — which is considered a leading indicator of a recession.

At the interbank foreign exchange (Forex) market, the rupee opened weak at 69.77 and fell further to touch the day’s low of 69.99. It finally ended at 69.83 per dollar, down 14 paise against its previous close of 69.69.

Brent crude futures, the global oil benchmark, tumbled 2.28% to $68.51 per barrel.

On the global front, the Trump administration on May 28 removed India from its currency monitoring list of major trading partners, citing certain developments and steps being taken by New Delhi which addressed some of its major concerns.

Switzerland is the other nation that has been removed by the U.S. from its currency monitoring list which, among others, include China, Japan, South Korea, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam.

Meanwhile, foreign institutional investors (FIIs) pulled out ₹304.27 crore on a net basis on May 29, provisional data showed.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07% to 98.02.


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Printable version | Oct 22, 2021 5:44:42 AM | https://www.thehindu.com/business/markets/rupee-slips-14-paise-to-6983-against-us-dollar/article27290896.ece

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