INR vs USD: On Thursday, the rupee closed flat at 72.59 against US dollar.
- On Thursday, the rupee closed flat at 72.59 against US dollar after initial strong gains were erased by fag-end dollar demand from importers.
- According to the provisional exchange data, FPIs (Foreign Portfolio Investors) invested Rs 552.44 crore on a net basis in equities on Thursday.
- The Reserve Bank of India (RBI) on Thursday eased cash requirements for banks and said it would provide durable liquidity, but the relief was short-lived for markets fearful of a credit crunch arising from problems among non-banking finance companies (NBFCs).
- The government on Wednesday announced hike in customs duty on 19 items, including jet fuel and air conditioners, to curb 'non-essential imports' and check the widening current account deficit resulting from high crude oil prices and the rupee dipping to a historic low.
- According to a Reuters poll, RBI likely to raise interest rates in early October to prop up a retreating rupee.
- RBI's dollar sales to stem the rupee's fall have sucked up rupee liquidity and raised borrowing costs.
- For many analysts, the retreating Indian rupee, which has tumbled nearly 15 per cent since early 2018 and remains the worst-performing major Asian currency, is likely of concern to policymakers
- Meanwhile, domestic stock markets started Friday's session in the green. At 9:22 am, the S&P BSE Sensex climbed 167.43 points to trade at 36,491.60. The broader NSE's Nifty50 was trading 42.10 points, or 0.38 per cent, up at 11,019.65.
- Asian shares inched higher on Friday, following gains on Wall Street overnight after news of robust US economic growth, with the chairman of the Federal Reserve saying the United States does not face a large chance of near-term recession.
- Oil prices inched up on Friday, with investors trying to gauge the potential impact on supply from looming US sanctions on Iran's crude exports. (With agencies inputs)
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