Rupee Breaches 72 Against Dollar, Ends At Over 2-Month Low: 10 Things To Know

After opening lower at 71.75 against the greenback, the rupee fell to as much as 72.10 in intraday deal.

Rupee Breaches 72 Against Dollar, Ends At Over 2-Month Low: 10 Things To Know

On Monday, the rupee had closed at 71.47 against the dollar.

The rupee tumbled by 62 paise to breach 72 per dollar mark and ended at over two-month low of 72.09 against on Wednesday. Poor macro-economic data and lingering worries over US-China trade war weighed on traders sentiments. After opening lower at 71.75 against the greenback, the rupee fell to as much as 72.10 in intraday deals. On Monday, the currency had closed at 71.47 against the dollar. Forex market was closed on Tuesday for "Guru Nanak Jayanti".

Here are 10 things to know about rupee:

  1. According to V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities, rupee fell for the third day in a trot amid contraction in industrial activity.

  2. India's industrial production shrank by 4.3 per cent in September, registering the weakest performance in eight years due to output decline in manufacturing, mining and electricity sectors, according to official data released on Monday.

  3. On the global front, investors remained concerned over uncertainty in US-China trade deal. 

  4. Asian stocks and Wall Street futures fell on Wednesday, as growing worries that US-China trade talks are stalling and concern about intensifying unrest in Hong Kong hurt demand for risky assets.

  5. US President Donald Trump dubbed China a cheater on trade even as he seeks an initial settlement to calm an 18-month trade war, adding to the uncertainty over the deal between the two countries.

  6. Further, a strong dollar overseas also brought rupee under pressure, analysts said.

  7. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.02 per cent to 98.32.

  8. The S&P BSE Sensex and NSE Nifty 50 indexes declined on Wednesday. The Sensex ended 229 points or 0.57 per cent lower at 40,116 and the Nifty 50 index declined 73 points or 0.61 per cent to close at 11,840.

  9. However, global crude oil benchmark Brent Futures fell 1.18 per cent to trade at $61.33 per barrel.

  10. The 10-year government bond yield was down 0.52 per cent at 6.53 per cent.



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