Rupee declines to 70.75

Wed Dec 05 2018

 

The rupee depreciated by 26 paise to 70.75 against the US dollar in early trade due to strengthening of the US dollar, foreign fund outflows and heavy selling in domestic equity market.

 

According to forex dealers, fresh demand for the American currency from importers also weighed on the domestic unit. Besides, investors were treading a cautious path ahead of the RBI policy decision.

 

The rupee opened weak at 70.70 and further dropped to 70.75. On Tuesday, the rupee had slipped 3 paise to 70.49 due to increased demand for the American currency from importers and rising global crude oil prices.

 

The 30-share BSE index fell 209.22 points, or 0.58 per cent, to 35,925.09 and the NSE index dropped 75.90 points, or 0.70 per cent, to 10,793.60. As per provisional data, foreign funds withdrew Rs 55 crore from capital markets on a net basis.

 

However, lower crude prices restricted the rupee’s losses. Brent crude, the international benchmark, was trading at $60.87 per barrel on Wednesday, down 1.95 per cent.

 

Source: Reuters