INSUBCONTINENT EXCLUSIVE:
The rupee declined by 43 paise on Monday amid strengthening of the US dollar overseas
The rupee closed at 72.63 against the greenback, breaking its two-day rising streak
Fresh concerns on the US-China trade concerns along with a selloff in the domestic equity markets weighed on the currency, according to
Rising crude oil prices - with the global benchmark Brent returning to 2014 highs around $80 a barrel - also affected the rupee
The latest bout of weakness in the rupee came a day after the Reserve Bank of India said the central bank along with market regulator Sebi
were watching market developments closely and would act if required.3
While the latest tariffs imposed by China on US imports kicked in from Monday, reports said that China had cancelled upcoming trade talks
Fears of further escalation of trade war between the world's two largest economies kept emerging market currencies including rupee under
The rupee could continue to remain under pressure, say analysts.5
The overall appetite for Indian assets seems low as of now given higher crude prices and higher US yields, and there aren't likely to be any
meaningful capital inflows, said IFA Global, a forex advisory firm.6
Any decision on the key US interest rate will be watched closely by analysts this week.7
"The Federal Open Market Committee (FOMC) rate decision on Wednesday is the most important event this week and will likely set the tone for
the next leg of dollar move," IFA Global added.8
to the fifth consecutive session
The BSE Sensex plunged 536 points, or 1.5 per cent, to close at 36,305, while the NSE Nifty dropped 168 points, or 1.6 per cent, to end at
currency so far this year.(With agency inputs)
