Rupee falls sharply to nearly one-month low against US dollar

INR Vs USD: Rupee settled at 70.93 against the US dollar.

INR Vs USD: Rupee settled at 70.93 against the US dollar.

New Delhi: The rupee (INR) fell sharply against the US dollar (USD) today amid weak domestic equities and broad strengthening of the American currency. At the Interbank Foreign Exchange, the rupee opened lower at 70.50 against the US dollar and fell further to 70.95 against the US dollar. The rupee settled at 70.93 against the US dollar – its lowest close in about a month – down 44 paise from its Friday’s close of 70.49. Forex traders said the strength of the US dollar against other overseas currencies and weak global risk sentiment weighed on the domestic currency.

The rupee has come under pressure as global oil prices have gained nearly 20% since hitting an 18-month low in late December. Crude prices were trading around $60 mark today.

Meanwhile, the domestic equities were trading on a weak note today, tracking lower Asian markets and weak industrial production data. The Sensex fell nearly 150 points against the US dollar.

Meanwhile, foreign funds sold shares worth Rs 687.20 crore from the capital markets on a net basis on Friday, while domestic institutional investors bought shares worth Rs 123.17 crore, provisional data showed.

Most of the Asian currencies, except Japanese yen, were trading lower against the US dollar. The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.61, down 0.05% from its previous close of 95.67.

Meanwhile, China’s exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand. Weak China trade data has dampened global risk sentiment, forex advisory firm IFA Global said in a note.

With Agency Inputs

First Published: Mon, Jan 14 2019. 12 56 PM IST

Source: livemint