INSUBCONTINENT EXCLUSIVE:
The rupee weakened further against the US
The rupee, which has traded around 68 against the US dollar for the past few sessions, touched 68.29 on the downside during Wednesday's
That marks the weakest level seen against the greenback since January 11, 2017
Dollar strengthened against a basket of currencies on uncertainty over the outcome of US-China trade talks
US President Donald Trump said he was not pleased with recent trade talks between the United States and China, tempering optimism over
progress made so far in trade talks between the world's two largest economies
In late morning deals, the rupee was trading at 68.19 against the US currency.1
The rupee is likely to trade in the range of 68.07-68.40 with in the near term, says forex advisory firm IFA Global.2
The rupee is down 6 per cent so far this year amid concerns over current account deficit after global crude oil prices surged to multi-year
"The risk sentiment seems to have dampened post Trump denying his administration's claim that a framework on trade was being worked out with
China that would ease the current trade tensions," said IFA Global, a forex advisory firm
Mr Trump's remarks followed Beijing's announcement that it would cut import tariffs for automobiles and car parts
Investors also awaited minutes of the Federal Reserve's last policy meeting due later in the day for hints on the pace of further US
Forex traders will also watch FOMC (Federal Open Market Committee) minutes for any signs of hawkishness and perceptible changes in views of
US central bank members on expected economic conditions.5
Weakness in the stock markets also impacted the rupee
A selloff in metal and energy stocks dragged the BSE Sensex and NSE Nifty lower
However, a surge in heavyweight SBI shares limited the downside
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,651.63 crore while domestic institutional investors (DIIs) bought shares
worth Rs 1,496.83 crore on Tuesday, provisional data shows.(With agency inputs)
