ADVERTISEMENT
Rupee Logs Steepest Single-Day Fall In Over A Month
04 Feb 2019, 06:25 PM IST 
On Friday, the rupee had settled 17 paise lower at 71.25 against the dollar.
- In two days, the rupee lost a total 72 paise against the dollar. Forex traders said foreign fund outflows and a stronger dollar following blockbuster US employment and factory data impacted sentiment in the forex market.
- The rupee depreciated against the dollar due to concerns over fiscal slippage and a stronger dollar.
- Credit rating agency Moody's said that the inability to meet fiscal deficit target for four consecutive years as a big "credit negative" for the sovereign which further dampened the sentiment, said forex advisory firm IFA.
- Meanwhile, investors were cautious ahead of the next meeting of the Reserve Bank of India's Monetary Policy Committee, scheduled for February 5-7.
- At the interbank foreign exchange (forex) market, the rupee opened lower at 71.57 and fell further to touch the day's low of 71.82. The domestic unit pared some losses before ending at 71.80 per dollar, down by 55 paise against its previous close. On Friday, the rupee had settled 17 paise lower at 71.25 against the dollar.
- Analysts say rising crude oil prices led to pressure in the forex markets.
- "Brent crude rose for fifth straight day to gain almost 6 per cent in last one week. The resultant pressure on Indian rupee is visible as it is trading lower," said Sunil Sharma, chief investment officer, Sanctum Wealth Management.
- Brent crude, the global benchmark for crude oil, was last seen trading 0.16 per cent higher at $62.97 per barrel.
- The benchmark BSE Sensex Monday recovered from the day's low to end 113.31 points, or 0.31 per cent, higher at 36,582.74. The NSE Nifty also edged higher by 18.60 points, or 0.17 per cent, to close at 10,912.25.
- Foreign funds sold shares worth Rs 112.13 crore from the capital markets on a net basis on Monday, while domestic institutional investors sold shares worth Rs 65.22 crore, provisional data compiled by NSE showed. (With agency inputs)
(With agency inputs)
