On Monday, the Indian rupee fell sharply to its lowest ever point against the US dollar intra-day trade at 90.80 before closing at a new all-time low of 90.74 (provisional). The domestic currency dropped the session by 25 paise against its last close due to the uncertainty in a potential India-US trade deal, as well as further outflows of foreign capital.
The rupee began trading at interbank foreign exchange market at 90.53 to the greenback. Nonetheless, it was quickly put into selling pressure, and fell in a straight line in the course of the day, reaching an intra-day low of 90.80 which is a drop of 31 paise compared to the closing price on the day before. The rupee recorded another historic low of 90.74 at the close of the trading hours.
Brent crude oil in the commodities market narrowly increased with a futures trade of 0.21 per cent to $61.25 per barrel, and this will further worry India, which is a key oil importer.
The domestic equity markets too finished in red. The benchmark Sensex dropped 54.30 to end at 85, 213.36 whereas the wider Nifty dropped 19.65 to end at 26, 027.30. As part of the cautious investor mood, Foreign Institutional Investors (FIIs) divested equities to the tune of 1,114.22 crore on Friday, according to the exchange data.
The positive aspect is that the foreign exchange reserves of India improved. Reserve Bank of India reported that forex reserves increased to $1.033 billion to reach $687.26 billion by the end of the week as compared to the decrease in the forex reserves of $1.877 billion to $686.227 billion in the earlier week.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News