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Rupee weakens against US dollar on subdued global cues

10 May 2019 Evaluate

Indian rupee weakened against the US dollar on Friday as US-China trade related concerns and foreign fund outflows weighed on investor sentiments. Further, rising crude oil prices and a prolonged spell of weakness in the equity markets also pulled down the local unit. Foreign institutional investors (FIIs) pulled out Rs 655.36 crore on a net basis Thursday, provisional data showed. On the global front, the dollar was steady against the safe-haven Japanese yen, taking in stride the hike in US tariffs on Chinese goods that went into effect and awaiting resumption of talks between top officials of the world’s two largest economies. US President Donald Trump’s tariff increase to 25 percent from 10 percent on $200 billion (153 billion pounds) of Chinese goods kicked in on Friday, and Beijing said it would strike back, increasing tensions as the two sides pursue last-ditch talks to try salvaging a trade deal. United States and Chinese officials will return to the negotiating table later on Friday.

The partially convertible currency is currently trading at 69.97, weaker by 3 paise from its previous close of 69.94 on Thursday. The currency touched a high and low of 70.0750 and 69.9600 respectively. The reference rate for the dollar stood at 69.86 and for Euro stood at 78.24 on May 9, 2019. While the reference rate for the Yen stood at 63.59, the reference rate for the Great Britain Pound (GBP) stood at 90.98.

Date1US$1GBP
May 09, 201969.868590.9879
May 08, 201969.600990.9002

(Reference Rate)

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