For a fourth straight day, the Indian Rupee ended the week lower. It started the day with a small rise, but the Indian rupee dropped 6 paise to end at 85.36 per US dollar, down from 85.30 on Thursday. Because of this, the rupee lost more than a per cent while reversing a two-month winning streak in May.
Pressure on the rupee happened even as the US dollar weakened around the world due to a trade policy issue between former President Trump and other world leaders. A ruling from the trade court that removed Trump-era ‘liberation day’ tariffs was reversed by the US Court of Appeals. It caused markets to swing and sparked fresh volatility in the currency markets.
During the same period, the dollar index, which looks at the US dollar against six big global currencies, went up 0.31% to 99.58. Yet, considering the whole year, the index is still down 8% due to persistent worry among investors over shaky trade and government policies. In their view, the greenback is set to suffer its fifth straight monthly loss because of worries about the US economy and uncertainty over trade policies.
To make matters worse, US growth turned negative in the March quarter after three years of constant growth. Because of this development, some are more concerned about the speed of the economic recovery and what it means for trade around the world.
Crude oil prices rose in the commodities market after the latest tariff decision. Brent crude went up by 0.41%, to $64.41 per barrel at 3:43 PM IST, while WTI crude rose by 0.56%, to $61.28 per barrel. Higher oil costs could continue pressuring the rupee this week due to India’s need to buy imported petroleum.
People are still worried about investing because of the unresolved economic and policy concerns around the world.
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