Rupee today slides past 72 against US dollar after big fall: 5 things to know1 min read . Updated: 13 Nov 2019, 06:29 PM IST
- The rupee today closed at over two-month low against the US dollar
- A stronger dollar and weak macro data hurt the sentiment
The Indian rupee fell sharply against the US dollar today, amid a broad dollar strength and weak economic data. The rupee today closed at a two-month low of 72.08 against the US dollar, as compared to the previous close of 71.46. Weak domestic equity markets also hurt the rupee. During the day, the rupee traded in the range of 71.65-72.09 against the US dollar after opening at 71.77. This is the lowest closing level for the rupee since September 4.
Here are 5 things to know about the rupee's fall:
Factory output contracted 4.3% in September, the worst performance in almost eight years, according to data released on Monday. "The slowdown seems broad-based. Q2 GDP due for release on 29th November is expected in the 4.8-5.2% band," says forex advisory firm IFA Global.
"The Indian rupee surpassed the level of 72 against the U.S. dollar. It was mainly due to weak economic outlook. Industrial output data for the second consecutive month points to a deep slump in economic activity," said Shrikant Chouhan, of Kotak Securities.
The Sensex today fell over 200 points, hurt by a weaker rupee and a fall in factory output data. "Indian rupee fell for the third day in trot amid contraction in industrial activity," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.
"Amid broad US dollar strength, the rupee may remain under pressure and is likely to underperform its emerging market peers," it added.
Forex traders will later today watch Fed chair Powell's testimony to the Congressional Joint economic committee. The US dollar today gained 0.10% against a basket of currencies, just off three-week highs. US President Donald Trump on Tuesday threatened to "substantially" increase tariffs if China failed to agree a trade deal and also took a swipe at European Union trade policies. (With Agency Inputs)