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Rupee Weakens Sharply Against US Dollar: 10 Things To Know

The rupee was trading at 71.94 to the dollar, after touching 71.52, its strongest since September 5 and compared with its previous close of 72.19.

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Rupee Weakens Sharply Against US Dollar: 10 Things To Know

INR vs USD: Forex markets were closed on Thursday on account of 'Ganesh Chaturthi'.

The rupee erased all gains against the US dollar and weakened sharply to 71.99 on Friday, reported news agency Reuters. According to dealers, the depreciation in Indian currency came after sustained dollar demand from oil importers pushed the unit below a strong resistance level. The rupee was trading at 71.94 to the dollar, after touching 71.52, its strongest since September 5 and compared with its previous close of 72.19. Meanwhile, government assured that all steps would be taken to ensure the domestic currency does not depreciate to unreasonable levels.
Here are key things to know about rupee rate today:
  1. The Finance Ministry said the government and the central bank 'will do everything' to ensure that rupee does not slide to 'unreasonable levels'.
  2. Consumer inflation eased to 3.69 per cent in August, below the Reserve Bank of India's medium-term target of 4 per cent, according to official data released post-market hours on Wednesday.
  3. Retail inflation cooled to a 10-month low in August on cheaper food items while industrial output expanded by 6.6 per cent in July, the official data showed. Food inflation slowed to 0.29 per cent from a year earlier, against 1.37 per cent in July.
  4. Bonds market also opened on a strong note on Friday, tracking a pull-back in crude oil prices overnight and receding trade tensions between the United States and China. The 10-year benchmark bond yield was at 8.11 per cent in early trade, down from its previous close of 8.13 per cent.
  5. Asian shares nudged higher on Friday as moves by the United States and China to resolve a bitter trade dispute and a sharp interest rate hike in crisis-hit Turkey supported global risk appetite.
  6. Oil prices on Friday clawed back some of its losses from the previous session when prices fell the most in a month, although worries that emerging market crises and trade disputes could dent demand continued to drag.
  7. Forex traders will now closely watch an economic review meeting by Prime Minister Narendra Modi scheduled on Saturday for any steps that could prop up the rupee, which has been the worst performer in Asia so far in 2018.
  8. Meanwhile, forex markets were closed on Thursday on account of 'Ganesh Chaturthi'. 
  9. On Wednesday, the Indian currency closed sharply higher. Rupee rebounded from the historic low of 72.91 to end higher by 51 paise at 72.18 against the US dollar.
  10. The rupee has been hitting multiple lows almost every day this month. It has weakened about 12 per cent this year, according to a report by news agency Reuters. (With agencies inputs)


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