BackRupee closes over 1% weaker against US dollar, steepest fall in 21 months
The rupee closed at 64.85 a dollar, down 1.06%, its most fall since 24 August 2015, from its Wednesday's close of 64.16
Premium
Mumbai: The Indian rupee on Thursday weakened over 1.1%, its steepest fall in 21-month against the US dollar as concern over US President Donald Trump spurred a sell off in emerging market currencies.
The rupee closed at 64.85 a dollar, down 1.06%, its most fall since 24 August 2015, from its Wednesday’s close of 64.16. The rupee opened at 64.36 a dollar and touched a low of 64.92—a level last seen on 6 April.
According to a PTI report, a Democratic lawmaker has called for impeachment of Trump for his alleged involvement in obstruction of justice, after news reports revealed that he had asked thethen-FBI director James Comey to stop investigations against former national security advisor Michael Flynn. The former FBI chief will be testified by Congress on Wednesday next week.
“Markets, in line with global peers, reacted sharply to the news that the US President tried to influence federal investigation, raising doubts over his policies ahead", said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
The benchmark Sensex index fell 0.73% or 223.98 points to closed at 30,434.79. So far this year, it has risen 13%.
So far this year, the rupee has gained 5%, while foreign investors bought $6.94 billion and $9.15 billion in local equity and debt markets, respectively.
The 10-year bond yield closed at 6.677% compared to its previous close of 6.679%. Bond yields and prices move in opposite directions.
Asian currencies were trading lower. South Korean won was down 0.57%, Taiwan dollar 0.26%, Indonesian rupiah 0.24%, China renminbi 0.19%, China Offshore 0.18%, Philippines peso 0.14%, Malaysian ringgit 0.10%, Singapore dollar 0.06%. However, Japanese yen was up 0.21%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.495, down 0.08% from its previous close of 97.575.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
