The rupee today staged an impressive rebound from life-time low levels, surging by 21 paise to end at 68.84 against the US dollar on suspected the central bank's intervention to check volatility in currency markets.
The country's foreign exchange reserves declined USD 734.5 million to USD 405.075 billion for the week ended July 13, Reserve Bank data showed today.
U.S. President Donald Trump on Friday dug in on his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ “big competitive edge,” and lamented the strength of the U.S. dollar.
The rupee today took a hard 43-paise knock to close below the 69 level for the first time at a historic low of 69.05 against the US currency as upbeat comments on the US economy by the Federal Reserve chairman drove the greenback to one-year high levels higher against global currencies.
Gold prices sank to a fresh one-year low on Thursday as the dollar powered higher following comments from U.S. Federal Reserve chairman Jerome Powell which reaffirmed expectations for more interest rate rises in the world’s largest economy.
The rupee fell back sharply from a two-week high, depreciating by 17 paise to end at 68.62 against the US currency on renewed dollar demand from banks and importers even as crude oil hovered near its multi-month lows.
Nifty index is up 4 per cent so far this year but investor sentiment suggests a bear market going forward, according to a UBS research note.
Rupee slipped from its early gains, trading lower by 2 paise to 68.47 against the American currency in late morning deals on bouts of dollar demand from importers and banks amid surging dollar overseas.
Rupee firmed up by 12 paise to 68.33 against the US dollar on increased selling of the American currency by exporters and banks.
The rupee today bounced back to settle at a fresh two-week high of 68.45 against the US currency, gaining 12 paise as crude oil prices beat a hasty retreat, easing inflation and trade deficit worries.