ZCZC
BCN-12
INDIA-RUPEE-USD
Rupee plummets amid Kashmir tension, Yuan fall
Mumbai, Aug 5, 2019 (BSS/PTI) – The rupee was trading down by 77 paise at
70.37 against the American currency on Monday, amid uncertainty over Kashmir
Issue and US-China trade related concerns.
In a highly volatile trade, the rupee opened at 70.20 at the interbank forex
market and touched a low of 70.59 and a high of 70.18 against the American
currency.
The domestic currency was trading at 70.37 against the American unit, down 77
paise over its previous closing price at 1211 hours.
The rupee had settled at 69.60 against the US dollar on Friday.
Forex traders said, besides the US-China trade related concerns, Home
Minister Amit Shah moving resolution in Rajya Sabha that all clauses of
Article 370 will not be applicable to Jammu and Kashmir kept pressure on the
Indian rupee.
The government on Monday moved a bill proposing bifurcation of the state of
Jammu and Kashmir into two union territories — Jammu and Kashmir division
and Ladakh.
Making the announcement in Rajya Sabha, Union Home Minister Amit Shah said
the UT in Ladakh will have no legislature like Chandigarh while the other UT
of Jammu and Kashmir will have a legislature like Delhi and Puducherry.
Shah introduced the Jammu and Kashmir Reorganisation bill.
Market participants were also trading the cautious path as the RBI’s Monetary
Policy Committee (MPC) meeting starts on Monday. The outcome of the meeting
is expected on August 7.
However, easing crude oil prices and weakening of the American currency vis-
a-vis other currencies overseas supported the local unit to some extent.
Brent crude futures, the global oil benchmark, fell 1.50 per cent to USD
60.96 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital
markets, pulling out Rs 2,888.06 crore on Friday, as per provisional data.
Benchmark indices Sensex was trading 462.64 points down at 36,655.58 and
Nifty down 143.45 points at 10,853.90.
On the global front, the Chinese yuan fell to its lowest level against the
dollar since August 2010 in morning trade on Monday. The weakening was
largely owing to US President Donald Trump’s plan to impose fresh tariffs on
another USD 300 billion in Chinese goods.
The onshore yuan also tumbled, hitting 7.0307 on Monday morning trade to
reach its lowest level since 2008.
BSS/PTI/HR/1315