Why Rupee lost value on Tuesday?
The local unit lost about half a percent or 32 paisa to close at 68.38 on Tuesday. During the day it fell to 68.43 against the greenback.
By Saikat Das, ET Bureau |
MUMBAI: The Rupee has weakened against the dollar as overseas investors exited domestic investments seeking safety of safe heaven assets.
The local unit lost about half a percent or 32 paisa to close at 68.38 on Tuesday. During the day it fell to 68.43 against the greenback.
“There was a dollar demand all across as Foreign Institutional investors were seen on selling spree again in domestic markets putting pressure on the rupee,” said Keta Kurkute, AVP, Forex Risk Advisory at Mecklai Financial. “Some short dollar covering was seen today in the local market amidst rising dollar demand against the emerging market currencies.”
The Reserve Bank of India is suspected to have intervened to check the rupee’s further dip amid free falling other emerging market currencies mostly.
The volatility is expected intensify with Chinese Yuan giving no clear direction and major oil producing countries failing to conclude on excess crude oil productions.
Foreign portfolio investors net sold Rs 964 worth of equities, show provisional data from BSE.
The local unit lost about half a percent or 32 paisa to close at 68.38 on Tuesday. During the day it fell to 68.43 against the greenback.
“There was a dollar demand all across as Foreign Institutional investors were seen on selling spree again in domestic markets putting pressure on the rupee,” said Keta Kurkute, AVP, Forex Risk Advisory at Mecklai Financial. “Some short dollar covering was seen today in the local market amidst rising dollar demand against the emerging market currencies.”
The Reserve Bank of India is suspected to have intervened to check the rupee’s further dip amid free falling other emerging market currencies mostly.
The volatility is expected intensify with Chinese Yuan giving no clear direction and major oil producing countries failing to conclude on excess crude oil productions.
Foreign portfolio investors net sold Rs 964 worth of equities, show provisional data from BSE.
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