Markets

Rupee weakens by 5 paise

The Indian rupee on Tuesday weakened by 5 paise to end at 61.88 against the Greenback on sustained demand for the American currency from importers amid a broader sell-off in equities. File photo

The Indian rupee on Tuesday weakened by 5 paise to end at 61.88 against the Greenback on sustained demand for the American currency from importers amid a broader sell-off in equities. File photo  

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The Indian rupee on Tuesday weakened by 5 paise to end at 61.88 against the Greenback on sustained demand for the American currency from importers amid a broader sell-off in equities.

Widening current account deficit due to soaring gold imports mainly put pressure on Indian unit that fell for the second day, despite a weak dollar overseas.

At the Interbank Foreign Exchange (Forex), the domestic unit commenced lower at 61.89 compared to overnight closing level of 61.83. It hovered in a wide range owing to volatile domestic stocks between 61.9175 and 61.8475 before concluding at 61.88, showing a loss of 5 paise, or 0.08 per cent.

“Robust capital inflows along with profit-taking in the U.S. currency after its recent rally some what cushioned the rupee sentiment,” a forex dealer said.

India’s current account deficit (CAD) widened to $10.1 billion or 2.1 per cent of gross domestic product in the second quarter of this fiscal, up from 1.2 per cent a year-ago primarily led by a steep rise in gold imports.

Deficit concerns were to some extent offset by foreign capital inflows against the backdrop of plunging global oil and commodity prices, traders said.

Meanwhile, equities plummeted for the third straight day with Sensex and Nifty sliding over 1 per cent spooked by a rout in global financial markets and growth concerns.

Foreign portfolio investors bought shares worth a massive Rs. 4,984.60 crore on Monday as per provisional data.

Benchmark Brent crude slipped to a five-year low, sliding below $66 a barrel on growing worries over a deepening supply glut.

The dollar index, which measures the Greenback against a basket of six major currencies, was down by 0.36 per cent.

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Printable version | Jan 25, 2020 1:04:28 PM | https://www.thehindu.com/business/markets/rupee-weakens-by-5-paise/article6676449.ece

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