Rupee Depreciated by 15 paise to 71.02 against US dollar

Breaking a gaining streak of seven consecutive sessions, the rupee weakened by 18 paise to close at 70.87 against the dollar on Monday.

Rupee depreciated by 15 paise to 71.02 against the US dollar in early trade today at the interbank foreign exchange, after US President Donald Trump suggested a tariff hike on Chinese goods, reported .

The rupee opened weak in line with other Asian currencies after Mr Trump on Monday said that for any trade deal China has to treat his country “fairly”. On Monday, the rupee had closed at 70.87 against the dollar.

Know about the rupee-dollar rate today:

1) At the interbank forex market, the rupee opened lower at 70.91 and declined further to quote at 71.02, showing a fall of 15 paise over its previous close.

2) Breaking a gaining streak of seven consecutive sessions, the rupee weakened by 18 paise to close at 70.87 against the dollar on Monday.

3) Fresh demand for the American currency from importers amid marginal rise in crude prices weighed on the domestic unit, PTI reported, citing forex dealers.

4) The international benchmark, Brent crude was trading higher by 0.28 per cent to $60.65 per barrel.

5) Fresh foreign inflows restricted the decline in the local unit, traders said.

6) Foreign institutional investors (FIIs) made fresh purchases worth Rs. 62.74 crore Monday, as per provisional data.

7) On Monday, the Reserve Bank of India (RBI) partially eased a requirement for companies to hedge dollars while raising funds from overseas markets – a move that will encourage companies to raise funds offshore and reduce demand for dollars in the domestic market, reported .

8) RBI said companies would now be required to hedge 70 per cent of their external commercial borrowings (ECB) for maturity periods of three to five years, instead of the full exposure.

9) The move should help to support the rupee, which has fallen nearly 10 percent against the dollar since the beginning of the year, by attracting dollar inflows.

10) On Monday, Mr Trump seemed to quash hopes of a trade truce with China by saying that he expects to move ahead with raising tariffs on $200 billion in Chinese imports to 25 per cent from 10 per cent currently.

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