Indian Rupee: Plummets To 19-Month Low As Dollar Strengthens Overseas

The Indian rupee dropped against the US dollar in early trades on Wednesday, 27 June 2018 on strong month-end dollar demand from importers and banks amid sustained foreign capital outflows. The dollars strength against some currencies overseas weighed on the local unit but a higher opening of the domestic equity markets capped the losses.

The domestic currency commenced trade at Rs 68.48 against the dollar and plunged by 30 paise to hit a 19-month low of 68.54. This is the rupees lowest level against the greenback since November 29, 2016. In the spot currency market, the Indian unit was last seen trading at 68.4975. Yesterday, the rupee lost 11 paise to end at 68.24 against the US currency.

A divergent trend was witnessed in early trade as the barometer index, the S&P BSE Sensex, was trading with small gains while the Nifty 50 index was trading with small losses. At 9:24 IST, the barometer index, the S&P BSE Sensex, was up 10.34 points or 0.03% at 35,500.38. The Nifty 50 index was down 5.70 points or 0.05% at 10,763.45. Most Asian stocks declined. Overseas, most Asian stocks fell as concerns linger over the impact of potential global trade restrictions. US stocks rose yesterday, 26 June 2018 as a rally in American crude overshadowed lingering concerns about the impact of heightened trade tensions.

Meanwhile, the U.S. dollar index, which measures the greenbacks strength against a trade-weighted basket of six major currencies, gained 0.26% to 94.19, bouncing back from an overnight low of 93.84, which was the weakest level since June 14.