Markets

Rupee weakens further, down 9 paise

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Sustained demand for the U.S. currency from banks and importers contribute to fall amid falling crude prices and foreign capital outflows.

In line with equities, the rupee also extended its losses for the third day on Wednesday by falling 9 paise to 68.07 a dollar on sustained demand for the U.S. currency from banks and importers amid falling crude prices and foreign capital outflows.

Foreign portfolio investors (FPIs) sold shares worth Rs. 113.98 crore on Tuesday, as per provisional data released.

The domestic unit resumed lower at 68.18 per dollar as against on Tuesday’s closing level of 67.98 at the Interbank Foreign Exchange (Forex) market and dropped further to 68.26 on initial heavy dollar demand.

However, it trimmed losses and recovered slightly to 68.03 per dollar before ending at 68.07, still showing a loss of 9 paise or 0.13 per cent.

It has lost 29 paise or 0.43 per cent in three days.

The domestic currency hovered in a range of 68.03 and 68.26 per dollar during the day.

The dollar index was lower by 0.15 per cent against a basket of six currencies in early trade.

In the global market, the yen strengthened against the dollar and other rivals in Asian trade in the late afternoon on Wednesday, with a deepening aversion to risk prompting investors to seek the safety of the Japanese currency.

However, the U.S. dollar ended lower on Tuesday in the global market against its major rivals on sharp slide in crude oil prices, pulling down U.S. debt yields to 9-month lows and dulling the greenback’s appeal.

Meanwhile, the benchmark >BSE Sensex ended lower by 315.68 points or 1.29 per cent.

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Printable version | Dec 9, 2019 7:32:58 AM | https://www.thehindu.com/business/markets/rupeedollar-trade-on-february-3-2016/article8188901.ece

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