Forex

Rupee tanks 97 paise to 9-month low on weak macro data, strong dollar

PTI Mumbai | Updated on September 03, 2019 Published on September 03, 2019

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.

 

Published on September 03, 2019
This article is closed for comments.
Please Email the Editor