In the year so far, the rupee has weakened 1.9%. (Mint)
In the year so far, the rupee has weakened 1.9%. (Mint)

Rupee slips to one-month low on US-China trade concerns

  • At 9.10am, the home currency was trading at 71.36 a dollar,
  • Asian currencies fell after US President Donald Trump said on Friday that the US government has not agreed to roll back all tariffs with China

The Indian rupee on Monday hit a near one-month low against the US dollar tracking its Asian peers which fell on fresh doubts over US-China trade deal.

At 9.10am, the home currency was trading at 71.36 a dollar, down 0.15% from Friday's close of 71.29. The Indian unit opened at 71.34 a dollar and touched a low of 71.38 -- a level last seen on 17 October.

Asian currencies fell after US President Donald Trump said on Friday that the US government has not agreed to roll back all tariffs with China.

The sentiment was also dented after Moody's lowered India’s outlook to negative from stable, while retaining the issuer rating at Baa2.

The yield on the 10-year Indian government bond was at 6.558% compared with its previous close of 6.557%.

In the year so far, the rupee has weakened 1.9%, while foreign investors have bought nearly $10.85 billion in Indian equities and $5.34 billion in debt.

In pre-opening trade, the benchmark Sensex Index rose 0.21% or 84.92 points to 40408.53 points. Year to date, it has gained 11.8%.

Asian currencies were trading lower. South Korean won was down 0.39%, Philippines peso 0.23%, China Offshore 0.22%, Indonesian rupiah 0.19%, Taiwan dollar 0.17%, Singapore dollar 0.16%, China renminbi 0.15%, and Malaysian ringgit 0.13%. However, Japanese yen was up 0.22%, and Thai Baht 0.09%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.34, down 0.01% from its previous close of 98.353.

(Bloomberg contributed this story)

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