Comments
The rupee crashed to 67.22 as the dollar hovered near a 3-1/2-month high versus the yen, after making big gains overnight as the markets prepared for a Donald Trump presidency that could stimulate the US economy fiscally and lift interest rates.
Besides foreign fund outflows and strong demand from importers, a weak domestic equity market also weighed on the rupee, forex dealers said.
The dollar climbed to a four-month high against some currencies overseas on the prospect of higher US interest rates with investors betting Donald Trump’s huge spending policies.
The rupee hovered in a range of 67.22 and 66.90 before quoting at 67.16, down 53 paise at 4.35 pm local time.
The rupee had yesterday retreated from two-month high levels due to a strong dollar globally and capital outflows, tumbling by 20 paise to close at 66.63 against the US currency.
Meanwhile, the benchmark BSE Sensex crashed nearly 700 points and the NSE index Nifty ended below 8,300 level as investors feared higher US interest rates under incoming President Donald Trump will spark capital outflows.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.