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Posted: July 3, 2018 12:43:15
The currency India lost about 8 percent this year as foreign investors pulled money and crude oil prices rose as the dollar strengthened across the globe, adding to the rupee's decline. (Illustration: CR Sasikumar)
Monday's rupiah dropped 34paise to close at a low of nearly 68.80 against the US dollar due to weak global trends, capital outflows and worries on the macroeconomic front
The rupee reached this level for the last time on August 28, 2013. The currency hit a high of 68.33 for morning trading, but these gains were later erased on the dollar's demand. As the RBI was not seen selling dollars to stem the decline, panic demand from importers and speculators plunged the national currency to an intra-day trough of
"The Rupee n & # US dollar: World markets plummeted after Chinese manufacturing PMI data released over the weekend missed estimates that the impending trade war was beginning to hurt the US market. China's manufacturing PMI was 51.5 in June, down from 51.9 in May, and the forecast of 51.6, "said IFA Global Research. According to a monthly survey, activity in the domestic manufacturing sector experienced the strongest growth this year, supported by rising domestic and export orders. The Nikkei India Manufacturing Purchasing Managers Index (PMI) rose from 51.2 in May to 53.1 in June. Market players trade cautiously before government announcement on MSP for Kharif crops
After PMI data in China, the United Kingdom, Europe and India focus will be on the US manufacturing PMI ISM. It should reach 58.2 against 58.7 the previous month. "Dollar demand and a further significant decline in Yuan could create headwinds for the NDF-Rupee." IFA Global said:
India's foreign exchange reserves fell for a second week to 407, $ 82 billion, the RBI announced.RBI sold dollar forex reserves to stabilize the rupee last week.
On June 28, the rupee fell to a record low of 69.09 against the US dollar intraday -day as fears about rising crude oil prices, capital market portfolio outflows and worsening current account deficit shook the foreign exchange market.The Indian currency lost about 8% this year so that foreign investors were withdrawing funds and that crude oil prices were rising with the strengthening of the dollar in the world, adding to the fall of the rupee Capital outflows in the order of Rs 60,000 crore – Rs 19,500 cro Stock market re and more than Rs 40,000 crore of the debt market – since April this year have put severe pressure on the rupee.
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