Rupee Ends Lower At 68.01 Against US Dollar. 5 Things To Know

Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore on Thursday.

Rupee Ends Lower At 68.01 Against US Dollar. 5 Things To Know

On Thursday, the rupee had gained 3 paise to end at 67.62 against the US currency.

The Indian rupee on Friday ended lower at 68.01 against the US dollar. However, the pound sterling finished lower at Rs 90.30/32 at the close of the Interbank Foreign Exchange (forex) market today. In early trade today, the Indian rupee plunged by 36 paise to hit a three-week low of 67.98 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows. Losses for the rupee came a day after the dollar strengthened against a group of currencies, after the European Central Bank signalled interest rate hikes were a long way off.

Here are few things to know about forex market today:

  1. European Central Bank's unexpectedly dovish decision overshadowed its statement that it aimed to wrap up its crisis-era stimulus programme at the end of this year. The ECB now plans to reduce monthly asset purchases between October and December to 15 billion euros until the end of 2018 and then conclude the programme.

  2. US dollar strengthening against other currencies overseas as the European Central Bank (ECB) pledged to leave interest rates unchanged until mid-2019, weighed on the rupee, traders said.

  3. The US Federal Reserve, on Wednesday, decided to raise rates by a quarter of a percentage point and indicated additional hikes this year than anticipated previously. That triggered a surge in the dollar, which added to headwinds for the rupee.

  4. Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore on Thursday, as per provisional data issued by the stock exchanges. 

  5. On Thursday, the rupee had gained 3 paise to end at 67.62 against the US currency, cutting short its two-day decline. (With inputs from Agencies)