Rupee Closes Below 70-Mark For First Time Against US Dollar. 5 Points
The Indian rupee fell 26 paise to close at 70.15/16 against US dollar today at the Interbank Foreign Exchange market, reported news agency Press Trust of India (PTI). In the opening trade, the Indian currency slumped 43 paise against the US dollar to trade at a life-time low of 70.32 on strong demand for the US currency. According to forex dealers, besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency. A sharp surge in trade deficit too impacted the Indian rupee today.
Here are 5 things to know about forex market's movement today:
1. Trade deficit soared to a near five-year high of $18 billion, data released by the commerce ministry on Tuesday showed.
2. Depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee today, according to forex dealers.
3. Finance Minister Arun Jaitley on Wednesday said that foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market.
4. Meanwhile, foreign institutional investors (FIIs) sold shares worth a net of Rs 378.84 crore on Tuesday, as per provisional data.
5. Meanwhile, domestic stock markets closed Thursday's session on a negative note. The S&P BSE Sensex tanked 188.44 points, or 0.50 per cent, to end at 37,663.56. The NSE's Nifty50 index tripped 50.05 points or 0.44 per cent to settle at 11,385.05. (With agencies inputs)