The Indian currency set a lifetime drop of 45 paise against the US dollar. On Monday the Indian currency left all the previous records of fall and made a new one of Rs. 72.18 against US dollar.
The reason behind the free fall of the currency is the strong demand for the US currency from importers as the greenback strengthened against other overseas currencies on the upbeat jobs data. Apart from the demand of the US currency from importers, oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.
It is also stated that the dollar strength against its rival currencies overseas amid fears of a possible hike in the US-China trade conflict which created a pressure on the Indian Rupee.
Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers said, “US non farm payroll data came at better than expected. Hence markets expect two more interest rate hike by the Fed (Federal), one in September and another in December. The RBI is nearly nonexistent, hence there is speculative buying in the market. (The) focus will now shift to India the Index of Industrial Production (IIP) and the Consumer Price Index (CPI).”
At the Foreign Exchange Market (FOREX) the currencies opened at Rs. 72.15 against the dollar which finally slipped to Rs. 72.18 down by 45 paise against US dollar this morning.
According to sources, the Asian shares also started the week in debt. They lost momentum for the eighth straight day while the dollar climbed as US President Donald Trump raised the stakes in the heated trade dispute with China.
The Bombay Stock Exchange (BSE) Sensex dropped 171.79 points or 0.45% to trade at 38,218.03.
