ZCZC
BCN-22
INDIA-RUPEE-USD
Rupee slips 25 paise to 68.66 vs USD in early trade ahead of RBI policy
outcome
Mumbai, Apr 4, 2019 (BSS/PTI) – The rupee depreciated by 25 paise to 68.66
against the US dollar in early trade Thursday ahead of the Reserve Bank of
India’s policy decision and foreign fund outflows.
At the Interbank Foreign Exchange, the rupee opened on a weak note at 68.56
then fell further to 68.66 against the US dollar, showing a decline of 25
paise over its previous closing.
The local unit, however, pared some losses and was quoted at 68.62 against
the American currency at 0930 hrs.
The rupee had surged by 33 paise to close at 68.41 against the US dollar
Wednesday.
Forex traders said below-normal monsoon forecast by private firm Skymet and
a probable dovish policy stance by the RBI weighed on the domestic unit.
Monsoon rains may be “below normal” this year, Skymet, a private weather
forecasting agency, said on Wednesday attributing it to the El Nino
phenomenon.
The outcome of the RBI’s Monetary Policy Committee (MPC) is expected before
noon on Thursday.
Besides, strengthening of the US dollar against some currencies overseas
and foreign fund outflows also added pressure on the local unit. However,
easing crude prices capped the losses for the domestic unit.
Foreign institutional investors (FIIs) remained net sellers in the capital
markets, pulling out Rs 1,040.48 crore Wednesday, as per the provisional
data.
Brent crude futures, the global oil benchmark, fell 0.04 per cent to USD
69.28 per barrel.
Meanwhile, domestic bourses opened on a cautious note Thursday with
benchmark indices Sensex trading 2.38 points down at 38,861.58 and Nifty up
4.75 points at 11,648.70.
BSS/PTI/HR/1340