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Rupee weakens against US dollar on Tuesday

15 Oct 2019 Evaluate

Indian rupee weakened against the US dollar on Tuesday on fading hopes of an initial trade deal between the world's two largest economies. Weak Chinese trade data also weighed on the domestic currency. Customs data showed that China’s import and export figures were worse than expected in September, with exports falling 3.2% on the year in US dollar terms, while imports declined 8.5%. However, weakening of the American currency against other currencies overseas, foreign fund inflows, and easing crude prices supported the rupee and restricted its fall. Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 895.63 crore on Monday, exchange data showed. On the global front, the dollar hovered below 2 1/2-month highs against the yen, failing to extend recent gains as optimism over trade deal between the United States and China and for an orderly British exit from the European Union started to fade.

The partially convertible currency is currently trading at 71.31, weaker by 8 paise from its previous close of 71.23 on Monday. The currency touched a high and low of 71.3350 and 71.2225 respectively. The reference rate for the dollar stood at 71.02 and for Euro stood at 78.24 on October 11, 2019. While the reference rate for the Yen stood at 65.78, the reference rate for the Great Britain Pound (GBP) stood at 88.42.

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