Business

Rupee down 55 paise vs US dollar, biggest one day fall this year

Rupee down 55 paise vs US dollar, biggest one day fall this year

Rupee down 55 paise vs US dollar, biggest one day fall this year

On a day when Congress leader and scion of Nehru-Gandhi family came up with a forceful performance in the Lok Sabha and attacked Prime Minister Narendra Modi and his government’s anti-people policies, the tumbling rupee added to the government’s woes.

There is no denying the fact that Prime Minister Modi is facing a string of attacks not just from opposition, even his party is admitting that there are serious issues.

The rupee’s steepest fall of the month couldn’t have come at a worse time. Logging its biggest fall of the year, the rupee on Monday plunged by 55 paise to close at over one-month low of 62.91 against the greenback amid sustained demand for dollars from importers. Meanwhile, the benchmark BSE Sensex stumbled by 555.89 points or 1.95 pct to end at three-week low of 27,886.21.

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Reports suggest that the dollar shortcoverings by exporters on the back of firm American unit overseas amid heavy capital outflows also kept the rupee under pressure, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced weak at 62.54 a dollar from last close of 62.36, but initially tried to recover to a high of 62.47.

At one point it seemed that the rupee was headed to below 64 against dollar. Later, it met with strong resistance and tumbled to a low of 62.93 before settling at 62.91, showing sharp loss of 55 paise — biggest fall at 0.88% in absolute term in 2015. It had concluded at 62.97 on March 13. The dollar index, a gauge of six other major rivals, was up by 0.40% following China’s latest stimulus injection to spur growth.

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