New Delhi: The rupee (INR) fell sharply against the US dollar (USD) today amid weak domestic equities and broad strengthening of the American currency. At the Interbank Foreign Exchange, the rupee opened lower at 70.50 against the US dollar and fell further to 70.86 against the US dollar. This is the lowest value of the rupee against the US dollar in nearly a month. On Friday, the rupee on had depreciated by 8 paise to close at 70.49 against the US dollar.
Rupee falls to nearly one-month low against US dollar
In noon trade, the rupee was down at 70.81 against the US dollar. Forex traders said the strength of the US dollar against other overseas currencies and weak global risk sentiment weighed on the domestic currency.
The rupee has come under pressure as global oil prices have gained nearly 20% since hitting an 18-month low in late December. Crude prices were trading around $60 mark today.
Meanwhile, the domestic equities were trading on a weak note today, tracking lower Asian markets and weak industrial production data. In noon trade, the Sensex was down over 250 points after industrial output dipped 0.5% in November.
Meanwhile, foreign funds sold shares worth Rs 687.20 crore from the capital markets on a net basis on Friday, while domestic institutional investors bought shares worth Rs 123.17 crore, provisional data showed.
Most of the Asian currencies, except Japanese yen, were trading lower against the US dollar. The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.61, down 0.05% from its previous close of 95.67.
Meanwhile, China’s exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand. Weak China trade data has dampened global risk sentiment, forex advisory firm IFA Global said in a note.