Rupee sinks further, closes at 70.11

Just like petrol prices the Rupee has also started gaining, though by a small margin as it closed at 70.11 on Thursday. The fall wasn’t a steep one as it still hovered over 70, at least a fall of 30 paise was witnessed at close which is slightly a brighter side. The Federal Reserve Bank’s call to increase the interest rate had a telling effect on the major currencies and dollar continued to surge.

The few things that you should know:

First, Though the Rupee finished at 70.11 per dollar, it did trade in between 70.14 and 69.96 throughout the day.

Also Read: Deficit in trade is of greater concern than rupee, says NITI chief

Secondly, following the declaration of the Fed’s new policy yesterday, it came to light that the US Central Bank was on the verge of increasing the interest rates which is over and above a couple of hikes that had already taken place. Naturally, the dollar got boosted against other major currencies of the world and Rupee had to the bite the dust.

Thirdly, the imposition of trade tariffs by the two of world’s strongest economies US and China came into operation that called for the safe-haven US currency. Though talks are on among the officials in the US capital, both the countries surged ahead with their second shot against each other.

Also Read: Rupee nosedives further, hits record low of 70.32 against US dollar

Fourthly, the market analysis suggests that Rupee can expect to scale up within the range it fluctuated.

Last but not the least, stock markets at several domestic regions witnessed slight gains and registered record closing highs. The heavyweights like Reliance Industries and L&T and exporters contributed to the growth. The rupee weakness, however, should inspire the exporters in Information Technology and pharma companies.