Rupee Breaks Its Three-Day Recovery Trend to Drop to 73.93 Against Dollar

A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.

PTI

A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.

rupee breaks its three day recovery trend to drop to 73 93 against dollar

The rupee has been depreciating since the beginning of this year for various reasons, including the recent trade and currency wars between US and China.

Mumbai: The rupee dropped 36 paise to 73.93 against the US currency in early trade Monday, breaking its three-day recovery trend, as crude prices rose amid weak macroeconomic data.

A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.

Dealers said, factors like the dollar's strength against some other currencies overseas and a volatile opening of the equity markets also impacted the domestic currency.

Also read: Is the Rupee Overvalued or Undervalued?

Industrial production slipped to a three-month low of 4.3% in August and retail inflation rose marginally to 3.77%

Friday, the rupee had ended 55 paise higher at 73.57 against the dollar, as global crude prices eased and domestic indices staged a smart rebound.

Foreign institutional investors sold shares to the tune of Rs 1,322 crore Friday, provisional data showed.

The benchmark BSE Sensex fell by 70.85 points, or 0.20%, to 34,662.73 in early trade after crossing the key 35,000-mark to hit a high of 35,008.65 at the outset.

This article went live on October fifteenth, two thousand eighteen, at twenty-five minutes past eleven in the morning.

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