Rupee closes at record low of 74.39, Indian indices close lower after volatile trading session
The decline was a result of an increase in the price of international benchmark Brent crude and the strengthening of the dollar overseas.
The rupee on Tuesday closed at a new record low at 74.39 against the dollar. The dip came after international benchmark Brent crude breached $84 a barrel while the dollar strengthened overseas.
The rupee advanced to 73.88 after opening higher on fresh selling by exporters as dollar weakened against some currencies overseas. Soon after, it fell 21 paise over its Monday’s close of 74.06. The rupee broke its record of October 5 of 74.23.
This came even as fuel prices continued to rise on Tuesday, with petrol costing Rs 82.26 per litre and diesel at Rs 74.11 per litre in New Delhi. In Mumbai, petrol cost Rs 87.73 per litre and diesel cost Rs 77.68 per litre. Last week, the Centre had announced a cut of Rs 2.5 per litre on both petrol and diesel and had asked the state governments to implement the same.
Meanwhile, the BSE Sensex closed 174.91 points lower at 34,299.47 and Nifty 50 ended lower by 47 points at 10,301. Adani Ports was the best performer on both the Sensex and the Nifty 50, gaining around 5% on both the indices. On the Sensex, Vedanta, Coal India and HDFC, Yes Bank, Sun Pharma performed well while Reddy Laboratories, Zee Entertanment performed well on Nifty 50. Meanwhile, Tata Motors was the biggest loser on the two indices.
The International Monetary Fund on Tuesday called for a tightening of monetary policy, a move the Reserve Bank of India did not take when it kept interest rates unchanged last week. The global body, in its World Economic Outlook, said India will grow at 7.3% in the 2018-’19 financial year. It downgraded its growth forecast for India for 2019-’20 from 7.5% to 7.4%.