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Rupee weakens to 72 level against dollar for first time in 2019

The currency opened 15 paise lower at 71.96 against the dollar in trade today compared to the previous close of 71.81, down 26 paise against the American currency.

twitter-logo BusinessToday.In        Last Updated: August 23, 2019  | 10:21 IST
Rupee weakens to 72 level against dollar for first time in 2019

The rupee fell to 72 level per dollar for the first time in 2019 today amid sell off in domestic equities and weakness in Chinese Yuan, which hit 11-year low level due to the ongoing US-China trade war. The currency opened 15 paise lower at 71.96 against the dollar in trade today compared to the previous close of 71.81, down 26 paise against the American currency.

On Thursday, the  Indian currency hit a eight-month low of 71.81, falling 26 paise against the dollar intra day. It finally settled at 71.81, down 26 paise against the American currency. This was the lowest level for the rupee since December 14, when it had closed at 71.90.

Tumbling equities and incessant foreign fund outflows weighed on sentiment. Also, the sudden drop in Chinese yuan led to increased volatility in emerging market currencies, including the rupee, forex dealers said.

The Sensex and Nifty closed lower on Thursday after top government officials virtually ruled out a stimulus package for slowdown-hit sectors, triggering another round of selling in banking, auto and metal stocks. The 30-share BSE Sensex sank 587.44 points, or 1.59 per cent, to finish at 36,472.93. The broader NSE Nifty slumped 177.35 points, or 1.62 per cent, to 10,741.35.

Both the key indices closed lower for the third straight session.

Today, Sensex fell another 326 points to 36,166 and Nifty lost 60 points to 10,680. In global market, China's yuan fell to fresh 11-year lows on Thursday amid worries about the deepening Sino-US trade war, despite support from major state-owned banks in both the spot and forwards markets. This also weakened sentiment for rupee at home.

Edited by Aseem Thapliyal

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