INR Vs USD: The rupee had settled at 70.81 against the US dollar on Tuesday.
The rupee extended its slide against the dollar on Wednesday and has slumped 3.05 per cent or 210 paise in the last five trading sessions. The home unit declined by 8 paise in today’s trade to close at 70.89 against the greenback, news agency Press Trust of India (PTI) reported. During the day, the rupee witnessed heightened volatility following the announcement of RBI Monetary Policy Committee (MPC) decision. At the interbank foreign exchange market, the rupee opened weak at 70.92. It touched a high of 70.62 and a low of 70.99, before finally closing at 70.89 against the greenback.
Here are key things to know about rupee-dollar rate today:
- The Reserve Bank of India today delivered its fourth repo rate cut in a row and maintained its “accomodative” stance. The MPC cut the repo rate by 35 basis points or 0.35 percentage point to 5.40 per cent.
- The decision of the Monetary Policy Committee to cut repo rate was unanimous, with four members voting to cut rate by 35 basis points and the rest voting for a 25-basis-points reduction.
- The RBI also revised GDP growth forecast for current financial year downwards to 6.9 per cent from 7 per cent estimated in the June policy.
- The United States-China trade concerns weighed on the investor community and kept pressure on rupee, while easing crude oil prices capped the losses to some extent, the report quoted forex traders as saying.
- China has reported to have said that it is halting new purchases of US agricultural products after President Donald Trump vowed last week to impose new tariffs on Chinese goods starting in September.
- Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 383.66 crore on Wednesday, NSE’s provisional data showed.
- Brent crude futures, the global oil benchmark, slipped 0.49 per cent to $58.65 per barrel.
- The domestic equity markets closed lower today after the Reserve Bank of India lowered the GDP growth forecast for current financial year. Both the benchmark indices closed lower.
- The Sensex fell 0.77 per cent or 286 points to close at 36,690 and the NSE Nifty 50 declined 0.85 per cent or 93 points to 10,855.
- The 10-year government bond yield was at 6.37 per cent on Wednesday. The dollar index, which gauges the greenback”s strength against a basket of six currencies, edged up 0.01 per cent to 97.64.
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