Rupee closes at new record low of 72.45 against dollar
Positive US jobs data and increased purchasing by Indian importers, amid a rise in crude prices and capital outflows impacted the currency’s value.
The rupee on Monday closed at a record low of 72.45 against the dollar, as the United States currency strengthened over positive jobs data. The Indian currency declined to 72.67 in the morning before recovering to finish 72 paise lower than its Friday’s close of 71.73. Increased purchasing by importers, including oil refiners, amid a rise in crude prices and capital outflows also affected the Indian currency’s value.
Opposition parties observed a shutdown on Monday to protest against the rise in fuel prices and decline in rupee’s value. The Congress has called for the bandh, and claimed to have the support of 21 parties.
The rupee opened at a new low of Rs 72.15 against the dollar at the Interbank Foreign Exchange market on Monday. On September 6, the Indian currency had breached the 72-mark for the first time.
The dollar has been strengthening amid speculation of an escalating US-China trade conflict.
Meanwhile, the BSE Sensex declined by 467.65 points, or 1.22%, to close at 37,922.17, while the NSE Nifty50 fell 151 points, or 1.30%, to close at 11,438.10. The top gainers on the BSE Sensex were Axis Bank, Wipro, YES Bank, Tata Consultancy, and Infosys. The biggest losers were Sun Pharma, Mahindra & Mahindra, Vedanta, IndusInd Bank, and State Bank of India.
On the Nifty50 index, the top gainers were HCL Technologies, Axis Bank, Zee Entertainment Enterprises, Cipla, and Wipro. Stocks of Bajaj Finance, Indiabulls Housing Finance, Sun Pharma Bajaj Finserv, and Mahindra & Mahindra declined the most.