MUMBAI: Breaking four-day rising streak, the rupee slipped by 48 paise against the dollar to close at 70.18 on Friday, on month-end dollar demand and sharp losses in domestic equities, reported Press Trust of India (PTI). Increased dollar demand from importers mainly oil companies weighed on the rupee sentiment, traders were quoted as saying in a PTI report. Despite losses on Friday, the rupee gained 172 paise or 2.4 per cent on weekly basis.Here are 10 things to know about Indian rupee:
- The dollar index dropped by 1 per cent to 96.55 due to concerns over weak economic growth and signs of US government shutdown.
- “Rupee opened stronger at 69.76 and traded in a 69.80-70.32 band as it trailed the dollar index on back of lower volumes in the forex markets due to banks strike,” said Salil Datar, Executive Director & CEO, Essel Forex Limited.
- Most branches of public sector banks were shut on Friday on account of a strike called by trade union All India Bank Officers’ Confederation (AIBOC). AIBOC has called a strike on Friday, demanding unconditional mandate for the XIth bipartite wage revision talks.
- “Rupee gave up some gains due to volatility in bond yield,” said Vinod Nair, head of research, Geojit Financial Services.
- The benchmark 10 year bond yield fell 16 basis points to 7.28 per cent this week, marking fifth weekly loss, said VK Sharma, head PCG and capital markets strategy, HDFC Securities.
- “Fall in oil prices is expected to provide strength to rupee in the near term,” Mr Nair said.
- Oil prices on Friday fell to their lowest since the third quarter of 2017, heading for losses of more than 11 per cent in a week. Brent crude, the international benchmark, was trading at $53.34 per barrel on Friday, lower by 1.86 per cent.
- According to B Prasanna, head, global markets group, ICICI Bank, the rupee is expected to strengthen towards 69 level by March 2019.
- “Over FY2020 we expect it to trade around 69-72 against the dollar. Capital flows would have to be watched especially on the Foreign Portfolio Investor as policy uncertainties and related volatility will continue even in 2019,” Mr Prasanna added. Foreign funds invested Rs. 134 crore on a net basis in the capital markets.
- Benchmark equity indices witnessed a heavy selloff on Friday. The BSE Sensex plunged 689.60 points, or 1.89 per cent, to end at 35,742.07, while the NSE Nifty slipped 197.70 points, or 1.81 per cent, to 10,754. (With inputs from agencies)
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