Indian Rupee Collapses Below 72 Level To Record Low Against U.S. Dollar
September 05 2018 - 3:27AM
RTTF2
The Indian rupee continued its selling spree against the U.S.
dollar for the sixth consecutive session on Wednesday, touching a
historic low, as fears over a rout in emerging markets and
escalating trade tensions between the U.S. and its key partners
dampened sentiment.
The sell-off in emerging markets intensified as South Africa
slipped into a recession for the first time since 2009 and Turkey
reported its highest inflation rate in 15 years.
Investors fret over rising trade tensions between the U.S. and
China, as fresh U.S. tariffs on $200 billion worth of Chinese goods
are expected to take effect as early as Thursday.
The U.S.-Canada talks will resume today, after the last round of
talks ended in failure.
Media reports quoted a top finance ministry official as saying
that the rupee will stabilize on its own, as there are no domestic
factors contributing to the depreciation.
The rupee broke the key 72.00 level against the greenback,
falling to a record low of 72.04. This represented a 0.9 percent
depreciation from Tuesday's closing value of 71.43.
The rupee has thus dropped almost 12 percent against the
greenback since January.
Indian markets also fell, with the benchmark 30-share BSE Sensex
declining 139.61 points or 0.37 percent to 38,018, while the
broader 50-share Nifty index dropped 43.35 points or 0.38 percent
to 11,477.
In economic news, survey data from IHS Markit showed that
India's private sector growth slowed notably in August driven by
weaker growth across manufacturing and services sectors.
The Nikkei composite output index dropped to 51.9 in August from
July's 21-month high of 54.1. Nonetheless, a score above 50
indicates expansion.
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