Rupee Posts All-Time Closing Low Of 69.05 Against Dollar: 10 Points
- The rupee traded in the range of 69.06-68.70 during Thursday's session, before settling at 69.05 against the US dollar.
- The dollar rose to its highest level since July 2017 against six major currencies on Thursday, supported by bullish comments from Mr Powell the previous day, which affirmed expectations for more interest rate increases this year. The Fed chief, in a closely watched two-day congressional testimony, said he believed the US was on course for years more of steady growth and played down the risks of an escalating trade conflict. Most Asian currencies dropped against the dollar.
- His comments bolstered the expectations of interest rate hikes, though gradually. The US central bank raised rates in June and policymakers indicated they expect two more rate increases this year.
- Besides, domestic political uncertainty subdued the key equity indices. BSE benchmark index Sensex and the NSE Nifty closed with mild losses. A decline in global markets also weighed on the domestic indices, say analysts. (Also read:Â New Rs 100 note to be issued shortly. Here's what it looks like)
- Investors seemed to be "cautious ahead of a parliament debate on Friday, July 20, 2018 about a no-confidence motion" against the current NDA government, news agency IANS cited Deepak Jasani, head of retail research at HDFC Securities, as saying.
- Global cues are not clearly supporting domestic market direction and trade tensions between the US and other major economies are keeping investors on edge, said Vinod Nair, head of research at Geojit Financial Services.
- Government data earlier this month showed retail inflation - determined by Consumer Price Index - accelerated to a five-month high of 5 per cent in June. That marked a fifth straight month of consumer inflation remaining above the Reserve Bank of India's comfort level. 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 - the difference between inflow and outflow of foreign exchange - 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.
- The rupee is down more than 8 per cent against the greenback so far this year. It had touched an all-time intraday low of 69.10 on June 28.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
