Rupee Opened Weaker Against US Dollar

Indian Rupee Vs Dollar: After opening at 73.74, the rupee fell 23 paise amid foreign fund outflows and weak trading in the domestic stock markets.

Rupee, opened weaker against the US dollar, further extended its fall to 73.79 today.

After opening at 73.74, the rupee fell 23 paise in early trade amid persistent foreign fund outflows and weak trading in the domestic stock markets.

The American currency’s increased demand from importers also weighed on the rupee, dealers were quoted as saying in a report.

In the previous session on Monday, the rupee had settled 24 paise lower at 73.56 against the US dollar.

Things you should know about the rupee-dollar rate today:

1) The rupee opened at 73.74 against its previous close of 73.56 against the US dollar, reported.

2) In early trade, the rupee shed 23 paise to fall further to 73.79 against the dollar.

3) Foreign fund outflows have been hurting the rupee sentiment, dealers said. On Monday, foreign portfolio investors sold net equities worth Rs. 511.91 crore, showed provisional data from the National Stock Exchange (NSE).

4) Weak trade in stock markets also weighed on the rupee, dealers said. The S&P BSE Sensex cracked below the 34,000 mark while the Nifty benchmark of the NSE breached the 10,200 level. At 11:53 am, the 30-share Sensex traded at 33,983.53, with a loss of 150.85 points or 0.44 per cent and the Nifty was at 10,187.70, down 57.55 points or 0.56 per cent.

5) On Monday, the rupee had opened higher at 73.36, touched an intraday high of 73.19 but closed lower at 73.56, with a loss of 24 paise or 0.3 per cent.

6) IFA Global Research Desk said in a research note that outflows from domestic equities and the overall dollar strength weighed on the rupee.

7) According to a report, the rupee, along with the Indonesian rupiah, are the worst two performers among their peers this year. Both India and Indonesia have large current account deficit and are heavily dependent on oil imports.

8) India imports more than 80 per cent of its crude oil requirements. For the quarter that ended June 2018, the current account deficit the value by which imported goods and services exceed exports rose to $15.8 billion or 2.4 per cent of gross domestic product (GDP) from $15.0 billion or 2.5 per cent a year ago.

9) Bearish bets on the Indian rupee and the Indonesian rupiah were the highest, according to the report.

10) Meanwhile, oil prices fell on Tuesday after Saudi Arabia pledged to play a “responsible role” in energy markets, although sentiment remained nervous in the run-up to US sanctions against Iran’s crude exports that start next month. Front-month Brent crude oil futures were at $79.52 a barrel at 0318 GMT or 8:48 am IST, down 31 cents, or 0.4 per cent, from their last close, reported .

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