INR Vs USD: Analysts said weak domestic stock markets and persistence foreign fund outflows led to the declines in the local currency.
Currencies And Forex | Edited By Anshul (With inputs from agencies) | Updated: August 29, 2019 11:12 IST
The 10-year government bond yield was up at 6.57 per cent in morning trade.
The rupee fell as much as 27 paise against the dollar on Thursday. Analysts said weak domestic stock markets and persistence foreign fund outflows led to the declines in the local currency. Pessimism over US-China trade talks also put pressure on the domestic unit, they added. At the forex market, the rupee opened lower at 71.96 and fell further to 72.04 at the day’s lowest point by late morning deals, against Wednesday’s close of 71.77. At 9:59 am, the local unit was trading at 71.94 against the greenback.
Here are 10 things to know about rupee’s movement today:
- The S&P BSE Sensex index fell as much as 260.05 points to 37,191.79 in early trade and the broader NSE Nifty benchmark moved to 10,965.50, down 80.6 points from the previous close.
- According to analysts, investors remained edgy over concerns about developments in the China-US trade talks. However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added.
- The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02 per cent to 98.19.
- The 10-year government bond yield was up 1 basis point at 6.58 per cent in morning trade.
- On Wednesday, the Cabinet gave nod to further liberalization of foreign direct investment (FDI) rules in four sectors. It approved FDI in digital media with its approval up to stake of 26 per cent, and allowed 100 per cent FDI in coal mining, associated infrastructure and sales of fuel.
- The Cabinet also allowed 100 per cent foreign direct investment in contract manufacturing and eased sourcing norms for single-brand retailers.
- FDI in contract manufacturing is intended to invite vendors who would want to rework their supply chains amid US-China trade uncertainty, IFA Global said in a note.
- Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 935.27 crore on Wednesday, as per provisional data.
- Meanwhile, Brent crude futures, the global oil benchmark, declined 0.63 per cent to $60.11 per barrel.
- The derivatives contracts (futures & options) for the month of August will expire at the end of the session.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24×7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.