Rupee Tumbles to 70.73 Versus US Dollar as Indian Economy Moves at Snail's Pace, Chinese Yuan Fares Better in Market
With the Indian economy going through a rough phase, another sad piece of news arrived as the Indian rupee on Monday weakened most against the US dollar since September 2013. The rupee ended 1.6 percent lower at 70.73 a dollar, its steepest fall since 3 September, 2013.
New Delhi, August 5: With the Indian economy going through a rough phase, another sad piece of news arrived as the Indian rupee on Monday weakened most against the US dollar since September 2013. The rupee ended 1.6 percent lower at 70.73 a dollar, its steepest fall since 3 September, 2013.
The Indian local currency opened at 70.06 on Monday and touched a low of 70.72 a dollar. So far this year, it declined 1.3 percent, as it closed at 69.60 on Friday. However, Chinese currency Yuan plunged below weakened below seven to the dollar on Monday as the escalation in the US-China trade war shook currency markets. Nirmala Sitharaman Claims Modi Govt Taking Steps to Improve Falling Indian Economy, Says 'Ready to Hear From FPIs on Any Issue'
With things blowing out of proportion and foreign portfolio investors (FPIs) losing interest in the domestic market, traders are now waiting for Reserve Bank of India's bi-monthly policy due on Wednesday. It is expected that the RBI’s monetary policy committee might decrease the repo rate by 25 basis points, opines economists.
Considering the fact that investors looking at the Union government to derive policies to boost confidence among the foreign investors, Finance Minister on Monday claimed that the government is getting inputs from various sectors and the Modi government is taking appropriate steps to improve the falling economy and is ready to hear from FPIs on 'any issue'.
Responding on the FPI exodus due to an additional surcharge on 'individuals and trusts', the Union Minister stated that her ministry has not yet decided on the timing and size of its sovereign overseas bonds and is ready to hear from FPIs on 'any issue'. Modi Govt's Tax Surcharge on Foreign Portfolio Investments Triggers Exit of Investors, Experts Question Corrective Measures
Considering the economic slowdown, fall of rupee value in the international market and FPI's losing interest in the Indian market, top finance ministry officials met with the senior bureaucrats in the prime minister’s office (PMO) in order to discuss FPI surcharge.
(The above story first appeared on LatestLY on Aug 05, 2019 10:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).