The slip of Indian rupee is mainly because of fresh buying of the American currency by importers amid sustained foreign fund outflows.
The Indian rupee skidded 16 paise to 68.24 against the US dollar in early trade on Thursday. The slip of Indian rupee is mainly because of fresh buying of the American currency by importers amid sustained foreign fund outflows. The US dollar hovering near an 11-month high against a basket of currencies overseas, supported by a rise in US yields, also weighed on the rupee but a higher opening of the domestic equity markets limited the fall, said forex dealers.
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The escalating trade threats between the world’s two biggest economies has also been affecting forex market. Increasing prospects for a full-blown US-China trade war triggered a risk-off atmosphere in many global currency markets after US President Donald Trump ordered to impose another round of tariffs on more Chinese goods, prompting China to retaliate.
Foreign portfolio investors (FPIs) sold shares worth Rs. 2,442.61 crore on Wednesday, as per provisional data issued by stock exchanges.
On Wednesday, rupee had staged a good comeback to end with a sharp gain of 30 paise at 68.08 against the US dollar on heavy bouts of dollar selling by banks and exporters with equities gaining ground.
Meanwhile, the market benchmark index S&P BSE Sensex opened 97 points higher at 35,644 on Thursday in early trade. The NSE’s Nifty50 also rose by 36 points to open at 10,808 in the early hours today.
All the sectoral indices were trading higher, led by capital goods, consumer durables, infrastructure, banking, realty and oil and gas. Stocks of Reliance Industries continued its upward trajectory, scaling a new peak of Rs. 1,031 by surging 1.08 per cent. (With PTI inputs)
