Indian Rupee: Weakens To Fresh Lows

The Indian rupee weakened further against the dollar in early trades on Friday, 08 June 2018 to hit a fresh 1-month low due to appreciation of the American currency overseas and foreign fund outflows. Increased demand for the US currency from importers and its gains against other currencies overseas coupled with weakness in the domestic stock market put pressure on the rupee.

The domestic currency commenced lower at Rs 67.52 against the dollar and dropped to a low of 67.54 per dollar in early trades before recovering to a high of 67.43 so far during the day. In the spot currency market, the Indian unit was last seen trading at 67.4575. Yesterday, the domestic unit had ended lower by 20 paise to 67.12 as a revival in global crude prices renewed Indias concerns on the fiscal front.

Domestic benchmark indices were trading lower in early trade on negative Asian cues. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 138.89 points or 0.39% at 35,324.19. The Nifty 50 index was down 39.35 points or 0.37% at 10,729. Overseas, Asian stocks declined after the mixed close on Wall Street. Japans economy shrank at an annualized pace of 0.6% in the January-March quarter.

Meanwhile, the dollar rebounded in morning trade in Asia Friday, although it was still hovering near three-week lows after sliding in the past few days. The U.S. dollar index, which tracks the greenback against a basket of six major currencies, added 0.03% to 93.46.