Rupee falls after rising to 2-month high against US dollar: 5 things to know
1 min read 30 Sep 2019, 01:14 PM ISTWeak domestic equity markets weighed on the rupeeThe government will today announce the borrowing calendar for October to March
PremiumThe Indian rupee (INR) today fell against the US dollar, failing to hold on to gains after rising to two-month high of 70.35 against the US dollar. The rupee settled at 70.86, as compared to its Friday's close of 70.56. The rupee traded in the range of 70.35 to 70.88 against the US dollar. A selloff in domestic equity markets and a broad strength in US dollar hurt the rupee. The Sensex ended 153 points lower today.
Here are 5 things to know about rupee-dollar trade today:
1) The government will today announce the borrowing calendar for October to March. "The rupee market would look for clarity on issuance of a sovereign foreign currency bond and inclusion in a global bond index," forex advisory firm IFA Global said in a note.
2) The RBI will also announce its monetary policy later this month and analysts expect the central bank to announce another rate cut. The RBI has already lowered its repo rate by 110 basis points so far this year.
3) Higher crude prices also weighed on the rupee. Global benchmark Brent is set to rise 2.1% in September, its first monthly gain since June, with prices lifted by an unprecedented attack on Saudi's oil facilities on September 14 that reduced its production by half.
4) Foreign institutional investors (FIIs) offloaded shares worth ₹213.60 crore on Friday, according to provisional exchange data.
5) The dollar index, which measures the greenback's strength against a basket of six currencies, rose to 99.18 before giving up some gains. Ahead of next month's trade talks with the US, Chinese Vice Commerce Minister Wang Shouwen said on Sunday the two major economies would resolve their trade dispute "with a calm and rational attitude". (With Agency Inputs)
