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Rupee ends considerably weaker along with equities

23 May 2019 Evaluate

Indian rupee ended considerably weaker against the US dollar on Thursday, as demand for the American unit from importers and banks picked up. Investors remained concerned with another private report indicating that foreign direct investment (FDI) in India has been declining, even though recent US-China trade tensions and the increasing working population should ideally make the world's fastest-growing economy attractive for investors. This could be because of investors' pre-election nerves and also because of recent protectionist measures taken up by India. The rupee’s losses were also caused by late hour sell-off in domestic equity market along with dollar’s strength against major global currencies. On the global front, dollar hit its highest level in a month as economic and political uncertainties swept through Europe and Asia, pinning down most major currencies like the euro and the yuan.

Finally, the rupee ended at 70.02, 35 paise weaker from its previous close of 69.66 on Wednesday. The currency touched a high and low of 70.07 and 69.37 respectively. The reference rate for the dollar stood at 69.76 and for Euro stood at 77.81 on May 23, 2019. While the reference rate for the Yen stood at 63.17, the reference rate for the Great Britain Pound (GBP) stood at 88.59.

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