Rupee skids 19 paise to near one-month low of 71.47 against dollar amid renewed global trade tiff concerns
Opening marginally lower, rupee dropped to a low of 71.54 to the US dollar before settling at 71.47, showing a fall of 19 paise.
This is the lowest closing level for the domestic unit since 15 October
Forex traders said that rupee loss was somewhat checked by lower crude prices and a weaker dollar
Investors also played their bets cautiously in view of India's rating outlook cut by Moody's investors Services last week
Mumbai: The rupee on Monday tumbled by 19 paise to a near one-month low of 71.47 against the US dollar as fresh concerns over US-China trade deal and Hong Kong unrest kept forex market participants edgy.
— CNBC-TV18 (@CNBCTV18Live) November 11, 2019
Investors also played their bets cautiously in view of India's rating outlook cut by Moody's investors Services last week.
Opening marginally lower, the Indian currency dropped to a low of 71.54 to the US dollar before settling at 71.47, showing a fall of 19 paise.
This is the lowest closing level for the domestic unit since 15 October.
Forex traders said that rupee loss was somewhat checked by lower crude prices and a weaker dollar against major currencies overseas.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.14 percent to 98.21.
Global crude oil benchmark Brent Futures fell 1.22 percent to trade at $61.75 per barrel.
"India's rupee declined for a second day in line with other Asian currencies as fresh doubts over US-China trade deal and unrest in Hong Kong. Risk sentiment worsened following escalating tensions in Hong Kong and after Trump said the US has not agreed to roll back all tariffs on China," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC securities.
The 10-year government bond yield was up 0.14 percent at 6.57 percent.
On the equities front, the BSE Sensex ended 21.47 points, or 0.05 percent, higher at 40,345.08. Similarly, the broader NSE Nifty edged up 5.30 points, or 0.04 percent, at 11,913.45.
Foreign institutional investors purchased shares shares worth Rs 932.20 crore on Friday, according to provisional exchange data.
Moody's Investors Service last week cut India's credit rating outlook to negative - the first step towards a downgrade, saying the government has been partly ineffective in addressing economic weakness, leading to rising risks that growth will remain lower.
"Rating agency Moody's changed its outlook on India to negative from stable which triggered off a slight sell-off in Indian assets - currency, equities and bonds," said Rajesh Cheruvu, Chief Investment Officer, Validus Wealth.
Uncertainty surrounding the US-China trade deal triggered fresh worries among investors globally, which got an additional boost from the news of increased protests in Hong Kong.
Indian forex and bond markets will be shut on Tuesday on account of "Guru Nanak Jayanti".
After initial losses, BSE Sensex rose by 0.41 percent or 233.25 points to 57,340.40, while NSE Nifty 50 opened at 17,055.80 and rose by 0.08 percent, gaining 12.90 points to 17,039.35
The domestic market indices BSE Sensex and NSE Nifty were in freefall on the morning of Friday, 26 November
The dollar index rose by 0.19 percent to 96.27 and the global oil benchmark Brent crude futures advanced 4.06 percent to USD 75.67 per barrel