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Rupee hits 6-month low against dollar

13 Aug 2019 Evaluate

Indian rupee fell to nearly 6-month low against dollar on Tuesday, amid rising geopolitical tensions across the globe. Market participants were cautious as the government data showed that India's factory output growth, measured by the Index of Industrial Production, slowed down for second straight month to 2.0% in June 2019 as compared to 7% in June 2018 & it is also lower than 3.1% in May 2019. Traders also remained wary ahead of Consumer Price Index (CPI) data for July scheduled to be released today. Heavy selling in domestic equities also kept pressure on the Indian rupee. Besides, dollar weakened against other currencies overseas failed to cast any impact on the rupee. On the global front, yen stood near a seven-month high against the dollar on Tuesday as unrest in Hong Kong and gyrations in Argentina's markets heightened investor risk aversion and fanned demand for the safe-haven Japanese currency.

Finally, the rupee ended at 71.40, 62 paise weaker from its previous close of 70.78 on Friday. The currency touched a high and low of 71.40 and 71.02 respectively. The reference rate for the dollar stood at 70.51 and for Euro stood at 78.90 on August 9, 2019. While the reference rate for the Yen stood at 66.58, the reference rate for the Great Britain Pound (GBP) stood at 85.60.

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