Rupee Loses 81 Paise Against US Dollar In Early Trade
The rupee, on Monday, fell 81 paise against the US dollar to 72.65 even as the government announced measures to curb its fall, reported news agency Press Trust of India (PTI). The rupee fell amid reports that the US could announce a new round of tariffs on Chinese imports later in the day. The dollar rose against a basket of major currencies overseas, with investors cautiously awaiting news on the implementation of US tariffs on an additional $200 billion of Chinese imports, forex dealers were quoted as saying in the PTI report.
On Friday, the rupee ended at a one-week high of 71.84 against the US dollar.
In a key economic review meeting chaired by PM Narendra Modi over the weekend, the government announced several steps to control the fall in the rupee amid high crude oil prices.
Finance Minister Arun Jaitley said that the government will take steps to cut down "non-necessary" imports, ease overseas borrowing norms for the manufacturing sector and relax rules around banks raising masala bonds, or rupee-denominated overseas bonds. He also expressed confidence that the country will meet its fiscal deficit target of 3.3 per cent of the gross domestic product (GDP).
Meanwhile, forex reserves declined by $819.5 million to $399.282 billion for the week that ended September 7, Reserve Bank data showed on Friday. The forex reserves slipped below the $400-billion mark for the first time in over a year. (With agencies inputs)