Rupee's tumultuous year ends with 9% annual loss at 69.77; gains 18 paise on last trading session of 2018

Mumbai: The Indian rupee Monday signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar but clocked a 9.23 percent fall during the year after witnessing its one of the tumultuous years in the recent past.

On year-over-year basis, the rupee depreciated by a whopping 509 paise, or 9.23 percent, as compared to 2017-end level of 63.87.

Forex traders, however, said fundamentals are supportive for the rupee over the next 6-12 months amid supportive growth momentum, robust forex reserves.

 Rupees tumultuous year ends with 9% annual loss at 69.77; gains 18 paise on last trading session of 2018

Representational image. Reuters.

"Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion and dollar stabilisation is likely to be positive for the rupee," global financial services major Standard Chartered said in a research note.

However, in the near-term, the trend in the US dollar, oil price and ensuing general elections will determine the direction for the local unit, it noted.

The rupee opened higher at 69.76 per dollar as against Friday's closing level of 69.95 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 69.95 and 69.74 before ending at 69.77 per dollar, showing a gain of 18 paise.
The rupee has gained 58 paise in the last two trading sessions.

Meanwhile, the dollar index was trading down by 0.26 percent at 96.15 against a basket of six currencies in the late afternoon trade.

Indian equity benchmarks Sensex and Nifty on Monday ended the last trading session of 2018 on a sluggish note but clocked gains for the third straight year in a row amid positive cues from global markets and strengthening rupee.

Both indices Sensex and Nifty snapped their three-session winning run and closed the final session of the calendar year with marginal losses.

The 30-share BSE index fell 8.39 points, or 0.02 percent, to finish at 36,068.33; while the broader NSE Nifty edged lower by 2.65 points, or 0.02 percent, to 10,862.55.

Brent crude, the international benchmark, was up 2.27 percent at $54.42 per barrel.

Foreign funds pulled out Rs 326.87 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 321.98 crore Monday, provisional data showed.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.7923 and for rupee/euro at 79.7805. The reference rate for rupee/British pound was fixed at 88.5488 and for rupee/100 Japanese yen at 63.21.

Your guide to the latest cricket World Cup stories, analysis, reports, opinions, live updates and scores on https://www.firstpost.com/firstcricket/series/icc-cricket-world-cup-2019.html. Follow us on Twitter and Instagram or like our Facebook page for updates throughout the ongoing event in England and Wales.

Updated Date: Dec 31, 2018 19:11:17 IST