Rupee plunges 31 paise to nearly one-month low of 71.54 on US-China trade worries

The rupee on Tuesday dived 31 paise to end at a nearly one-month low against the US currency due to heavy dollar buying amid fresh concerns over the progress of China-US trade talks

Press Trust of India October 15, 2019 19:41:54 IST
Rupee plunges 31 paise to nearly one-month low of 71.54 on US-China trade worries
  • Crude oil prices dropping more than half a percent and gains in the equity markets, however, helped the local unit contain losse

  • The rupee closed at 71.54 to the dollar, down by 31 paise or 0.44 percent -- the biggest one-day loss in this month

  • This is the lowest closing level since 17 September when the rupee had closed at 71.78 to the dollar

Mumbai: The rupee on Tuesday dived 31 paise to end at a nearly one-month low against the US currency due to heavy dollar buying amid fresh concerns over the progress of China-US trade talks.

Crude oil prices dropping more than half a percent and gains in the equity markets, however, helped the local unit contain losses.

The rupee closed at 71.54 to the dollar, down by 31 paise or 0.44 percent -- the biggest one-day loss in this month. This is the lowest closing level since 17 September when the rupee had closed at 71.78 to the dollar.

Rupee plunges 31 paise to nearly onemonth low of 7154 on USChina trade worries

Representational image. Reuters

Investor caution returned as reports suggested that China wanted more talks this month before agreeing to a deal with the US for settling trade issues. Chinese yuan also pared gains on fading hopes of a 'phase one' agreement between the two major economies as pitched by US President Donald Trump.

The US dollar also advanced against the major global currencies with the dollar index gaining 0.07 percent to 98.52 despite a surge in British pound.

The British pound rose around 0.7 percent to near levels not seen since July after the EU's top Brexit negotiator opined that a divorce deal could be possible this week.

Crude oil prices retreated for a second day after weak Chinese trade data and fresh concerns over the Sino-US trade talks.

Global benchmark Brent crude dropped more than 0.50 percent to $58.99 per barrel.

Indian stocks also advanced for the third session in a row on hopes of consumer demand revival in the upcoming festive season.
Sensex gained 291.62 points or 0.76 percent to end at 38,506.09 -- a two-week high for the index. Nifty rose by 87 points or 0.77 percent to settle at 11,428.30.

Meanwhile, yields on the benchmark 10-year government security spurted to 6.6668 percent against 6.48 percent in the previous day as retail inflation spiked in September.

Retail inflation rose to a 14-month high of 3.99 percent in September, inching closer to the RBI's comfort level of 4 percent.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.0188 and for rupee/euro at 78.2925. The rate for rupee/British pound was fixed at 89.2891 and for rupee/100 Japanese yen at 65.61.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Rupee snaps 5-day winning run, skids 11 paise to close at 71.02 on foreign fund outflows
Business

Rupee snaps 5-day winning run, skids 11 paise to close at 71.02 on foreign fund outflows

The rupee snapped its five-day winning streak to finish 11 paise lower at 71.02 against the US dollar on Thursday, weighed by unabated foreign fund outflows and a weak trend in domestic equity markets

Rupee drops 21 paise to three-week low of 71.23 on fading US-China trade deal optimism
Business

Rupee drops 21 paise to three-week low of 71.23 on fading US-China trade deal optimism

The rupee declined by 21 paise to close at a three-week low of 71.23 against the US currency on Monday as investors rushed to safe haven bets on fading hopes of an initial trade deal between the US and China

Rupee slips 3 paise to close at 71.04 amid rising demand for US dollars
Business

Rupee slips 3 paise to close at 71.04 amid rising demand for US dollars

The Indian rupee dipped 3 paise to close at 71.04 against the US dollar on Wednesday amid rising demand for the greenback vis-a-vis other currencies overseas, even as crude oil prices eased