Rupee Plunges To Record Low Of 69.12 Against US Dollar: 10 Points
- The yuan dropped further by 0.28 per cent to 6.7943 per dollar, its lowest levels in a year following a rising slump in recent weeks as the trade war between the US and China brewed. However, following the plunge in the yuan, the domestic currency fell to an all-time intra-day low of 69.12 against the American currency, showing a fall of 7 paise.
- The rupee's previous all-time intra-day low was 69.10, which it touched on June 28. A mad rush for the US dollar was witnessed as importers expected further erosion in the rupee value, forex dealers said. Â
- Yesterday, the rupee took a hard 43-paise knock to close below the 69 level for the first time at a historic low of 69.05 against the US currency as upbeat comments on the US economy by the Federal Reserve chairman drove the greenback to one-year high levels higher against global currencies.
- Meanwhile, foreign Portfolio Investors (FPIs) sold shares worth a net of Rs 315.69 crore yesterday, provisional data showed.
- The benchmark BSE Sensex rose by 71.68 points, or 0.20 per cent, at 36,422.91 in early trade today.
- The People's Bank of China lowered its yuan midpoint for the seventh straight trading day to 6.7671 per dollar on Friday, 605 pips or 0.9 per cent weaker than the previous fix of 6.7066, reported Reuters. The latest bout of yuan weakness, catalysed by concerns over the brewing China-US trade war and a slowing Chinese economy, has seen the yuan shed 7.6 per cent of its value against the dollar since the end of the first quarter of this year.Â
- Rupee is one of the worst-performing currencies in Asia and down more than 8 per cent against the greenback so far this year.Â
- Earlier this month data showed retail inflation - determined by Consumer Price Index - accelerated to a five-month high of 5 per cent in June. Separate data showed wholesale inflation - based on Wholesale Price Index - stood at 5.77 per cent, the highest level in over four-and-a-half years.
- Meanwhile, trade deficit widened to a more than three-and a-half-year high of $16.6 billion during the same month.
- Credit ratings agency Icra sees the country's current account deficit widening to $16-17 billion, or 2.5 per cent of GDP, in April-June. For the full year, the gap may scale a six-year high of $67-72 billion, it noted. The current account deficit was at $15 billion in the quarter ended June 2017. (With Agency Inputs)
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