Comments
The rupee on Tuesday dropped sharply by 97 paise to more than nine-month low of 72.39 against the US dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy.
The Indian currency came under pressure after official data released on Friday showed that India’s GDP growth fell to an over six-year low of 5 per cent in the June quarter.
Besides, the growth of eight core industries dropped to 2.1 per cent in July, mainly due to contraction in coal, crude oil and natural gas production.
The rupee opened lower at 72 to the US dollar at the interbank foreign exchange market and lost further ground to touch a low of 72.40 against the dollar.
The domestic currency settled down by 97 paise at 72.39 per dollar, logging its worst single-day fall since August 5 and the lowest closing level since November 13, 2018.
Forex traders said a stronger dollar also dragged the rupee down. The dollar index, which gauges the greenback’s strength against a basket of six currencies, inched up 0.36 per cent to 99.27.
Foreign funds pulled out $2.3 billion from local shares in August, the biggest outflow since October.
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.