Markets

Rupee pluges over 1%, trades at 70.33 against U.S. Dollar

Raising the growth rate to 9% in FY21 would require uplifting the investment rate to close to 38% of GDP as against 31.3% in FY19, EY said.

Raising the growth rate to 9% in FY21 would require uplifting the investment rate to close to 38% of GDP as against 31.3% in FY19, EY said.  

Rupee plunged over 1% amid a weak equity market which was trading at 70.33 against the Dollar around noon.

The Sensex was down over 500 points on a day the government decided to take away special status of Jammu and Kashmir.

The Rupee slumped 98 paise to 70.58 against the U.S. Dollar in opening trade on August 5, tracking weak opening in domestic equity market and unabated foreign fund outflows.

Forex traders said, the U.S.-China trade related concerns weighed on the investor community and kept pressure on the Indian rupee.

The massive decline in the Indian Rupee was largely a knee-jerk reaction to the slump in the Chinese currency after China’s central bank allowed currency depreciation after the U.S. decision to impose new tariff on Chinese goods, they said.

The Rupee opened weak at 70.20 at the interbank Forex market and then fell further to 70.58, down 98 paise over its last close.

The Rupee had settled at 69.60 against the U.S. Dollar on August 2.

However, easing crude oil prices and weakening of the American currency vis-a-vis other currencies overseas supported the local unit to some extent.

Brent crude futures, the global oil benchmark, fell 1.23% to $61.13 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out ₹2,888.06 crore on August 2, as per provisional data.

Domestic bourses opened on a negative note on August 5 with benchmark indices Sensex trading 533.94 points down at 36,584.28 and Nifty down 162.95 points at 10,834.40.

On the global front, the Chinese yuan fell to its lowest level against the Dollar since August 2010 in morning trade on August 5. The weakening was largely owing to U.S. President Donald Trump’s plan to impose fresh tariffs on another $300 billion in Chinese goods.

The onshore yuan also tumbled, hitting 7.0307 on August 5 morning trade to reach its lowest level since 2008.

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Printable version | Jun 4, 2020 1:24:50 PM | https://www.thehindu.com/business/markets/rupee-tanks-98-paise-to-7058-against-dollar-in-early-trade/article28819505.ece

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