Rupee Plunges To 19-Month Low On Strong Month-End US Dollar Demand. 5 Developments

The Indian rupee plunged by 30 paise on Wednesday to hit a 19-month low of 68.54 against the US dollar in early trade, new agency PTI reported. The major fall in Indian rupee was due to strong month-end dollar demand from importers and banks amid sustained foreign capital outflows. This is the rupee's lowest level against the greenback since November 29, 2016, said PTI. According to traders, the US dollar's strength against some currencies overseas weighed on the local unit but a higher opening of the domestic equity markets capped the losses.

Here are 5 latest developments:

1. DIIs bought shares Rs 238.05 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 538.40 crore on Tuesday, as per provisional data fron the National Stock Exchange (NSE).

2. On Tuesday, the Indian rupee weakened by 11 paise to close at 68.24 against the US dollar. Increased demand for the American currency put pressure on the rupee, according to market observers.

3. Crude oil prices took support from production losses in Canada, Libya and from the Neutral Zone between Saudi Arabia and Kuwait, but under pressure from higher supply from elsewhere in OPEC (Organization of the Petroleum Exporting Countries) and escalating trade conflicts, according to news agency Reuters. 

4. Meanwhile, stock markets rose slightly in the early hours of Wednesday. The S&P BSE Sensex opened 54 points higher at 35,543.89. At the same time, the NSE's index Nifty50 opened 16 points higher at 10,785.50. 

5. At other Asian markets, Singapore was up 0.25 per cent and Taiwan 0.12 per cent, while Japan's Nikkei shed 0.33 per cent in their early deals. (With Agencies inputs)