The Indian unit had opened at 71.18 (Reuters)
The Indian unit had opened at 71.18 (Reuters)

Rupee ends lower tracking Asian peers

  • Rupee closed at 71.21 a dollar, down 0.14% from Monday's close of 71.11. The Indian unit had opened at 71.18.
  • The benchmark equity index, Sensex, fell 0.49% or 205.10 points to close at 41323.81 points. Year to date, the index has gained 0.17%

MUMBAI : Indian rupee weakened for the fourth day in a row against US dollar on Tuesday tracking losses in other Asian currencies and on muted sentiment as the International Monetary Fund (IMF) lowered the global growth forecast citing weakness in the Indian economy.

Rupee closed at 71.21 a dollar, down 0.14% from Monday's close of 71.11. The Indian unit had opened at 71.18.

Year to date, the rupee has strengthened 0.15%, while foreign investors have bought nearly $1.7 billion in Indian equities and sold $1.56 billion in debt.

The IMF on Monday slashed India’s growth forecast by 1.3 percentage points to 4.8% for 2019-20, prompting the agency to also trim its global growth estimates as a result. IMF chief economist Gita Gopinath said growth in India slowed sharply “owing to stress in the non-bank financial sector and weak rural income growth".

Yield on the 10-year government bond was at 6.638% compared with its previous close of 6.644%. The benchmark equity index, Sensex, fell 0.49% or 205.10 points to close at 41323.81 points. Year to date, the index has gained 0.17%.

Asian currencies closed lower on risk-averse sentiment following the outbreak of coronavirus in China. South Korean won was down 0.77%, China Offshore 0.53%, China renminbi 0.51%, Malaysian ringgit 0.30%, Indonesian rupiah 0.22%, Singapore dollar 0.19%, Thai baht 0.16%, Taiwan dollar 0.13%, Philippines peso 0.10% and Hong Kong dollar 0.02%.

Safe-haven Japanese yen was up 0.12%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.49, down 0.12% from its previous close of 97.60.

(Bloomberg contributed this story)

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