Rupee Closes At Nearly 1-Month Low Against Dollar: 10 Things To Know

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.14 per cent to 98.21.

Rupee Closes At Nearly 1-Month Low Against Dollar: 10 Things To Know

Forex and bond markets will be shut on Tuesday on account of "Guru Nanak Jayanti".

Mumbai: The rupee declined by 19 paise to end at 71.47 against the dollar on Wednesday. This is the lowest closing level for the currency since October 15. After opening marginally lower,the rupee fell to 71.54 against the dollar in intraday deal. According to analysts, fresh concerns over US-China trade deal and Hong Kong unrest kept forex market participants edgy. Investors also played their bets cautiously in view of country's rating outlook cut by Moody's investors Services last week.

Here are 10 things to know about rupee:

  1. "Rupee declined for a second day in line with other Asian currencies as fresh doubts over US-China trade deal and unrest in Hong Kong. Risk sentiment worsened following escalating tensions in Hong Kong and after Donald Trump said the US has not agreed to roll back all tariffs on China," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC securities.  

  2. Other analysts added that rupee loss was somewhat also checked by lower crude prices and a weaker dollar against major currencies overseas.

  3. Brent Futures - the global crude oil benchmark - was last seen trading at $61.75 per barrel, down 1.22 per cent from its previous close.

  4. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.14 per cent to 98.21.  

  5.  According to Rajesh Cheruvu, Chief Investment Officer, Validus Wealth, a slight sell off in Indian assets was triggered after rating agency Moody's changed its outlook on India to negative from stable.

  6. Last week, Moody's Investors Service cut India's credit rating outlook to negative - the first step towards a downgrade, saying the government has been partly ineffective in addressing economic weakness, leading to rising risks that growth will remain lower.  

  7. "Uncertainty surrounding the US-China trade deal triggered fresh worries among investors globally, which got an additional boost from the news of increased protests in Hong Kong," Mr Cheruvu said.

  8.  On the domestic stock markets front, the BSE Sensex ended 21.47 points, or 0.05 per cent, higher at 40,345.08. The broader NSE Nifty edged up 5.30 points, or 0.04 per cent, at 11,913.45.

  9. Foreign institutional investors, meanwhile, purchased shares worth Rs 932.20 crore on Friday, according to provisional exchange data.    

  10. Forex and bond markets will be shut on Tuesday on account of "Guru Nanak Jayanti".



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