Rupee falls 17 paise against US dollar
The rupee fell 17 paise to 66.31 against the US dollar in early trade on Monday after weak Chinese manufacturing PMI readings sparked selling across Asian currencies.
By ET Online | Updated:
NEW DELHI: The rupee fell 17 paise to 66.31 against the US dollar in early trade on Monday after weak Chinese manufacturing PMI readings sparked selling across Asian currencies.
The domestic currency had closed at 66.14 against the greenback on Friday.
Chinese yuan dropped to a fresh five-year low against the US dollar in morning trade after China said manufacturing PMI contracted in December to 48.2, compared with 48.6 in November. A value below 50 suggests contraction.
Most Asian currencies fell. Korean won dropped 0.87 per cent. Indonesian rupiah (down 0.76 per cent), Malaysian ringgit (down 0.57 per cent), Thai baht (0.44 per cent) and Singapore dollar (down 0.39 per cent) were also trading lower.
Yuan fell 0.28 per cent to 6.51 against the greenback. Japanese yen inched 0.05 per cent lower even as December PMI readings suggests strengthening of manufacturing activity in Japan.
Concerns over slowing down of Chinese economy were among the major cause of concern in 2015.
However, the domestic currency did fare well, by falling 5 per cent for the year, compared with up to 19 per cent fall in Asian peers.
“We are continuing to see pressure on the rupee, at least for the first half of the year,” said independent analyst Anand Tandon, in a interview to ET Now last week.
The latest number for China has wreaked havoc on Asian equity indices, which fell nearly 3 per cent on the first trading session of 2016.
The domestic currency had closed at 66.14 against the greenback on Friday.
Chinese yuan dropped to a fresh five-year low against the US dollar in morning trade after China said manufacturing PMI contracted in December to 48.2, compared with 48.6 in November. A value below 50 suggests contraction.
Most Asian currencies fell. Korean won dropped 0.87 per cent. Indonesian rupiah (down 0.76 per cent), Malaysian ringgit (down 0.57 per cent), Thai baht (0.44 per cent) and Singapore dollar (down 0.39 per cent) were also trading lower.
Yuan fell 0.28 per cent to 6.51 against the greenback. Japanese yen inched 0.05 per cent lower even as December PMI readings suggests strengthening of manufacturing activity in Japan.
Concerns over slowing down of Chinese economy were among the major cause of concern in 2015.
ADVERTISEMENT
However, the domestic currency did fare well, by falling 5 per cent for the year, compared with up to 19 per cent fall in Asian peers.
“We are continuing to see pressure on the rupee, at least for the first half of the year,” said independent analyst Anand Tandon, in a interview to ET Now last week.
The latest number for China has wreaked havoc on Asian equity indices, which fell nearly 3 per cent on the first trading session of 2016.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
