Indian Rupee: Plunges Below Rs 67/$ Mark

The Indian rupee rebounded against the dollar in early trades on Monday, 07 May 2018 on fresh selling of the US currency by exporters and banks amid higher opening in the domestic equity market. Weakness in the dollar against some currencies overseas also propped up the rupee.

The domestic currency opened at Rs 66.83 against the dollar but plunged to a low of 67.0875 so far during the day. In the spot currency market, the Indian unit was last seen trading at 67.0525. On Friday, the rupee had lost 23 paise to close at 66.87 against the US currency in highly volatile trade.

Domestic benchmark indices were trading higher in early trade. At 9:18 IST, the barometer index, the S&P BSE Sensex, was up 98.91 points or 0.28% at 35,014.29. The Nifty 50 index was up 33.50 points or 0.32% at 10,651.75. The Sensex was trading above the psychologically important 35,000 mark after opening above that level.

Overseas, Asian shares were mixed despite the strong closing on Wall Street as investors digested last weeks trade talks and US jobs numbers. US stocks logged sharp gains on Friday, 4 May 2018, as technology stocks rallied, overshadowing uncertainty over tense trade talks between the US and China and a weaker-than-expected rise in April nonfarm payrolls. The US created 164,000 new jobs in April. Separately, the unemployment rate fell to 3.9% from 4.1%, the first time the jobless rate has dropped below 4% since the end of 2000.

Meanwhile, the dollar slid against the other major currencies in Asia on Monday morning but remained at its 4-month highs of above the 92 level. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.30, down 0.13%. The greenback reached this years new high at 92.70 last Friday, then dropped to the 92.30 level on Monday morning. Despite the recent momentum, the dollar has lost 6.3% in a year.