Indian Rupee Dips To Record Low Against U.S. Dollar
September 11 2018 - 03:45AM
RTTF2
The Indian rupee slid to a historic low against the U.S. dollar
in evening deals on Tuesday, with higher oil prices, trade worries
and rising U.S. interest rates undermining investor sentiment.
Oil prices rose as falling Iranian output tightened global
supply. Iran's oil exports are expected to decline by up to 40
percent once the U.S. sanctions on Iran come back into effect on
November 4.
Trade war worries persisted as U.S. President Donald Trump
remarked that he was preparing to slap tariffs on almost all goods
imported from China. China had vowed to retaliate against any such
tariffs.
Media reports quoted unnamed Finance Ministry officials as
saying that steps would be taken to rein in rupee weakness,
including deposit schemes for non-resident Indians along with
central bank intervention.
Indian markets also finished lower, with the benchmark BSE
Sensex falling 1.34 percent or 509 points to 37,413, while the
broader Nifty slumped 1.32 percent or 150.60 points to 11,288.
Breaking the key 72.5 level, the Indian rupee depreciated 2.9
percent to a record low of 72.84 against the greenback. The pair
was worth 70.81 when it closed deals on Monday.
So far this year, the rupee has weakened almost 11 percent
against the U.S. dollar.
Investors await India's consumer inflation and industrial
production data on Wednesday for directional clues.
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