Rupee slips 9 paise to 71.03 against dollar in early trade amid rising oil prices, US-China trade dispute concerns
The rupee however pared the initial loss and was trading flat at 70.94 against the US dollar at 1012 hours.
Michael Pillsbury, adviser to the White House on China policy, said that Trump would likely escalate the trade war
Foreign fund inflows, weakening of dollar and higher opening in domestic equity market supported rupee
The rupee had settled at 70.94 against the US dollar on Friday
Mumbai: The rupee opened marginally lower by 9 paise to 71.03 against the US dollar in opening trade on Monday, as rising crude oil prices and concerns regarding US-China trade war kept investors edgy.
— CNBC-TV18 (@CNBCTV18Live) September 23, 2019
Forex traders said reports that the US is likely to ramp up pressure on China by raising existing tariffs if a trade deal is not reached soon between the two countries, weighed on the domestic currency.
Michael Pillsbury, adviser to the White House on China policy, said that Trump would likely escalate the trade war by raising existing tariffs, if no deal is reached.
In an interview in Hong Kong on Thursday, Pillsbury said that Trump had been “remarkably restrained in the pressure he has brought to bear on China in the trade field”.
At the interbank forex market the rupee opened weak at 71.03 , down 9 paise over its last close.
The rupee had settled at 70.94 against the US dollar on Friday.
The local unit however pared the initial loss and was trading flat at 70.94 against the US dollar at 1012 hours.
Brent crude futures, the global oil benchmark, rose 1.04 percent to $64.95 per barrel.
Meanwhile, foreign fund inflows, weakening of the American currency vis-a-vis other currencies overseas and higher opening in domestic equity market supported the domestic currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 percent to 98.47.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 35.78 crore on Friday, as per provisional data.
Domestic bourses opened on a bullish note on Monday with benchmark indices Sensex trading 774.19 points higher at 38,788.81 and Nifty up by 245.45 points at 11,519.65.
The 10-year government bond yield was at 6.77 percent in morning trade.
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.
Forex traders said the strengthening of the greenback vis-a-vis other currencies overseas and weak opening in domestic equities added pressure to the rupee.
Rupee slips 9 paise to 68.80 in early trade; rising oil prices, foreign fund outflows weigh on domestic currency
At the Interbank Foreign Exchange, the rupee opened at 68.69 then fell to 68.80 against the US dollar, showing a decline of 9 paise over its previous closing.
Rupee slides further by 15 paise to end at fresh lifetime low of 70.74 on month-end demand for US dollars from importers
In the day trade, the rupee plunged to a record low of 70.90 to the dollar as firming oil prices fanned fears of widening current account deficit.