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Rupee Closes At Nearly 3-Week Low Against Dollar: 10 Things To Know
31 Oct 2018, 06:50 PM IST 
The rupee finished the month with a total loss of 2% against the dollar
- The rupee opened lower at 73.91 against the dollar, and hit an intraday low of 74.14 - breaching the 74-mark for the first time since October 15.
- The government stressed on Wednesday that the autonomy of the Reserve Bank of India (RBI) is "essential" as it sought to calm investors worried about a growing public quarrel with the central bank.
- Analysts say concerns on the the rift between the government and the central bank hurt the rupee.
- "Multiple reports of the government invoking Section 7 of the RBI Act to issue directives to the RBI and also rumour about the likely resignation of the RBI Governor had the markets worried, and even pushed the rupee lower beyond the Rs 74 level," said Joseph Thomas, head research at Emkay Wealth Management.
- Domestic stocks fell and the rupee weakened earlier in the day amid reports that RBI Governor Urjit Patel may consider resigning given the breakdown in relations. However, the markets finished the session with sharp gains, with the Sensex closing 550 points higher at 34,442.
- However, experts believe that the government's statement on autonomy of RBI should help rupee. "The press release from the Finance Ministry has clearly reiterated the government's stance on maintaining independence of RBI. This should build confidence across markets and help stabilise the rupee. The rupee can see levels of 73.30-73.60," said Salil Datar, CEO, Essel Finance.
- Crude oil prices recovered some ground after two days of losses, providing some support to the rupee. Crude oil prices rose to trade above $76 a barrel level, as markets braced for the imposition of US sanctions on Iran next week. Brent crude - the global benchmark - had declined 1.8 per cent on Tuesday, at one point touching $75.09 a barrel, its lowest since August 24.
- The dollar index - which measures the greenback against six major currencies overseas - hit a 16-month high on Wednesday.
- Foreign funds pulled out Rs 1,592.02 crore from the capital markets on a net basis, while domestic institutional investors net purchased shares worth Rs 1,363.04 crore on Tuesday, according to provisional data from the NSE.
- The rupee finished the month with a total loss of 2 per cent.
