The rupee reversed early gains to slip near the key 65 per
dollar mark against the US dollar on Thursday. It hit a low 64.96 per
dollar, a two-year low against the greenback. The rupee last traded
around these levels when the country was struggling with slow growth and
rising deficits.
Selling in the rupee has intensified over the last three days following China's unexpected devaluation of its yuan currency on Tuesday. The devaluation of the yuan has dragged down global equity and currency markets, leading to a sharp selloff in the rupee too.
Yuan's devaluation has sparked fears of a global currency war; analysts say continued depreciation in China's currency will increase the volatility in the rupee, pressure domestic exports and result in dumping of cheap Chinese goods in to India.
The reversal in the rupee led to a correction in stock markets too. The BSE Sensex, which had surged as much as 280 points in morning traded, was up around 150 points.
The rupee is now on course for a sixth straight day of loss. As of 11.00 a.m., the rupee traded at 64.93 per dollar.
Selling in the rupee has intensified over the last three days following China's unexpected devaluation of its yuan currency on Tuesday. The devaluation of the yuan has dragged down global equity and currency markets, leading to a sharp selloff in the rupee too.
Yuan's devaluation has sparked fears of a global currency war; analysts say continued depreciation in China's currency will increase the volatility in the rupee, pressure domestic exports and result in dumping of cheap Chinese goods in to India.
The reversal in the rupee led to a correction in stock markets too. The BSE Sensex, which had surged as much as 280 points in morning traded, was up around 150 points.
The rupee is now on course for a sixth straight day of loss. As of 11.00 a.m., the rupee traded at 64.93 per dollar.
No comments:
Post a Comment