Indian Rupee Extends Weakness against US Dollar

The domestic currency had lost 30 paise to end at 70.11 against the greenback.

The Indian rupee lowered by 13 paise to 70.24 against the US dollar in early trade today, reported .

The weakening of rupee is due to the increased demand for the American currency from importers and banks, said .

According to forex dealers, a firm dollar in overseas markets, ahead of Federal Reserve Chairman Jerome Powell speech at the annual global central bank conference in Jackson Hole later in the day, weighed on the Indian currency today.

Things to know:

1. On Thursday, the domestic currency had lost 30 paise to end at 70.11 against the greenback due to renewed worries about a hike in US interest rates and rising global trade war jitters.

2. Asian stocks fell on Friday after US-China trade talks ended without progress, with the markets braced for a speech by Federal Reserve Chairman Jerome Powell for hints on the direction of US monetary policy.

3. US President Donald Trump reiterated his displeasure with the Fed’s rate hikes earlier this week and investors waited to see whether Powell would respond to such criticism.

4. Oil prices rose on Friday as US sanctions on Iran are expected to cut significant volumes of crude from the market, although trading was muted by concerns over the unresolved trade dispute between Washington and Beijing.

5. The domestic equity indices opened Friday’s session on a negative note but soon recovered. According to brokers, besides profit-booking at record levels, a mixed trend at Asian markets following a negative leads from Wall Street dented the trading sentiments.

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