Rupee is down nearly 6 per cent against the US dollar amid rising oil prices
New Delhi:MNN:The Indian rupee today fell 56 paise against the US dollar amid volatile trade. The rupee ended at 68.07 against the US dollar, its lowest against the greenback since January 2017.
Rupee had closed at 67.51 on Monday.
The stock markets also remained volatile amid uncertainty over government formation in Karnataka.
Though the BJP has emerged as the biggest party in the Karnataka elections, it is still short of majority, according to the latest trends.
The Congress is making a bid to form a coalition government and has quickly arrived at an understanding with former prime minister Deve Gowda’s regional party, the Janata Dal Secular.
Things to know about dollar vs rupee trade (INR vs USD) today:
* At day’s low, the rupee fell to 68.13 against the US dollar. During the day, it traded in the range of 68.13 and 67.46.
* Year-to-date, the rupee is down nearly 6 per cent against the US dollar amid rising oil prices.
Since India imports bulk of its oil requirement, upward movement in prices of crude oil puts pressure on domestic inflation and current account deficit.
Brent crude futures, the international benchmark for oil prices, today rose to as much as $78.62 per barrel, touching a three-and-a-half-year high.
* Annual retail and wholesale inflation accelerated in April, mainly due to higher fuel and food prices.
Some economists changed their views to expect a more hawkish Reserve Bank of India at its policy meeting next month.
* The rupee has also been hurt by outflows from domestic capital markets
So far this month, foreign portfolio investors have sold net $1.6 billion in debt and $650 million in equity, according to forex advisory firm IFA Global.
The Sensex today gave up gains of over 400 points to end flat.
* In global markets, dollar was higher against a basket of six major currencies.
The dollar index against a basket of six major currencies edged up 0.2 per cent to 92.792 as easing trade tensions helped shore up the US dollar.
The US 10-year bond yield had inched higher on Monday, as optimism over President Donald Trump’s pledge to aid China’s ZTE Corp helped assuage US-China trade frictions.