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Rupee trading lower against dollar after exports enter negative zone

At the interbank forex market, the Indian rupee opened almost flat at 68.59, registering a decline of 5 paise over its last close of 68.54 against the US dollar,as the country's exports entered the negative zone after a gap of eight months.

twitter-logo BusinessToday.In        Last Updated: July 16, 2019  | 12:13 IST
Rupee trading lower against dollar after exports enter negative zone
The Indian currency was trading 2 paise lower at 68.56 level compared to the previous close of 68.54 against the US dollar.

The rupee was trading lower in morning trade today amid weak trade data and rising crude oil prices.

The Indian currency was trading 2 paise lower at 68.56 level compared to the previous close of 68.54 against the US dollar.

At the interbank forex market, the Indian rupee opened almost flat at 68.59, registering a decline of 5 paise over its last close of 68.54 against the US dollar,as the country's exports entered the negative zone after a gap of eight months.

Forex traders said weak trade data, foreign fund outflows and rising crude oil prices weighed on the domestic currency. Positive opening in domestic equities supported the local unit and restricted the downfall, they added.

According to government data, India's exports entered the negative zone after a gap of eight months recording a decline of 9.71 per cent to $25.01 billion in June. Imports also declined 9 per cent to $40.29 billion in June mainly due to falling prices of petroleum products, leaving a trade deficit of $15.28 billion.

The net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bearish with net selling Rs 216 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 591.72 crore on Monday.

Domestic bourses opened on a positive note today with Sensex breaching 39,000 level and Nifty trading above 11,600 in early trade, driven by gains in banking stocks, amid mixed cues from global markets.

The 30-share index BSE Sensex opened today at 38,961.86 against the previous close of 38,896, registering a loss of 865.86 points. Similarly, the broader index Nifty50 opened at 11,596.65 against the last close of 11,588, registering a gain of 8 points.

According to Vinod Nair, Head of Research at Geojit Financial Services, green shoots from earnings lifted the sentiment of IT sector, while ease in WPI inflation (June) to 2.02 per cent added some cheer in the market. However Q1 results announced so far have been mixed and going forward is expected to be subdued in nature, he added.

Listed companies namely HDFC Asset Management Company Ltd., Federal Bank, DCB Bank, Next Mediaworks, TV18 Broadcast, Network18 Media & Investments, Multi Commodity Exchange of India, Agro Tech Foods are subjected to post their quarterly earnings today, as per data available with the exchanges.

Top gainers in the Sensex pack included Tata Motors, Vedanta, NTPC, PowerGrid, ICICI Bank, SBI and Axis Bank, whereas TCS, Hero MotoCorp, Bajaj Auto, M&M, TechM, HCL Tech and Kotak Bank fell in the early trade.

Elsewhere in Asia, Asian markets like Japan Index declined half a percent and SGX Nifty in the Singapore Exchange traded down. China and Hong Kong Index were trading flat.

On the Wall-Street, US Futures on Dow Jones traded flat. Yesterday, US stocks eased from their record highs as bank stocks turned lower after the third largest US lender, Citigroup, reported a squeeze in interest margins.

Meanwhile, Brent crude futures, the global oil benchmark, rose 0.12 per cent to USD 66.56 per barrel.

(Edited with PTI Inputs)

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