Comments
The rupee ended flat at 72.60 on mild dollar selling by banks and exporters. However, capital outflows from the domestic equity market capped the rupee's gains.
The rupee strengthened by another 22 paise to 72.38 (intraday) as the government has raised the import duties on select items to check the rupee fall. It hovered in a range of 72.77 and 72.38 before ending at 72.60 at 5 pm local time.
The government had on Wednesday raised the import duties on 19 items, including jet fuel and air conditioners, in order to check the widening current account deficit resulting from high crude oil prices and the rupee dipping to a historic low.
The enhanced duty rates, which will make these imported goods expensive, will come into effect from the midnight of September 26-27, said a government statement.
US Fed rate hike had little impact on the dollar. The Fed had raised the interest rates for the third time this year on Wednesday. Fed still foresees another rate hike in December, three more next year, and one increase in 2020.
The rupee had on Wednesday rebounded by 9 paise to end at 72.60 against the dollar. Meanwhile, the Sensex ended lower by 218.1 points or 0.6 per cent at 36,324.17 and the Nifty down 76.25 points or 0.69 per cent at 10,977.55 as investors remained wary due to September month F&O expiry.
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.